FTSE 100 slips as pound recovers

Market trader (file picture) Image copyright Getty Images

The pound rose strongly in Monday trading, regaining some of the ground it lost last week.

Sterling ended the day up 0.47% against the dollar at $1.3130 and 0.42% higher against the euro at €1.1184.

Sterling had hit a one-month dollar low on Friday, amid uncertainty over Theresa May's future following the prime minister's mishap-strewn speech at the Conservative Party conference.

As the pound rose, the FTSE 100 share index slid 14.98 points to 7,507.89.

The FTSE 100 often falls when sterling rises, as the stronger currency cuts the value of companies' overseas earnings when they are brought back to the UK and converted back into pounds.

Shares in Smith & Nephew were among the biggest fallers on the index, down 1.5%, after the medical devices maker said its chief executive, Olivier Bohuon, intended to retire by the end of 2018.

In the FTSE 250, shares in hotels group Millennium & Copthorne jumped 22.9% after Singapore's City Developments offered to buy the remaining shares in M&C that it does not already own.

City Developments already controls about 65% of M&C. The offer values the hotels group at about £1.8bn.