Business

Barclays shares lift FTSE 100 index

Market trader (file picture) Image copyright Getty Images

Shares in Barclays were the best performer on the FTSE 100 after the bank reported a rise in third-quarter profits, boosted by a strong performance in its investment banking business.

It also set aside a further £600m to cover PPI mis-selling claims.

The bank's shares rose 4.8% to close at 189.65p. Rival Lloyds also rose after the government reduced its stake further to below 9%.

The FTSE 100 ended up 0.4% at 6,986.6.

Earlier, stronger-than-expected UK growth figures sent the pound to a one-week high against the dollar.

However it fell back sharply and by the end of London trading was down 0.74% at $1.2156

The latest GDP figures indicated that the economy grew by 0.5% in the third quarter of the year, better than analysts' forecasts of 0.3%.

Against the euro, the pound was down 0.71% at €1.1147.

BT fell 2.1% after the telecoms group - which recently acquired mobile firm EE - reported its latest results. Adjusted revenues in the second quarter rose 1.1% to £6bn, with pre-tax profits up 24% to £873m.

Shares in Debenhams rose 3% despite the department store group reporting a 10% drop in full-year profits to £101.7m.