Business

Sterling climbs back above $1.27

Market trader (file picture) Image copyright Getty Images

The pound recovered some of the ground lost since the election on Thursday as UK inflation rose more than expected.

Inflation increased to 2.9% in May from 2.7% the month before, whereas analysts had forecast no change in the rate.

Sterling climbed back above the $1.27 level, and in late afternoon was up 0.6% at $1.2737. It was up 0.65% against the euro at 1.1376 euros.

On the stock market, the FTSE 100 share index surrendered early gains to close 11 points or 0.15% lower at 7,500.44.

Shares in Madame Tussauds and Alton Towers owner Merlin Entertainments fell 2.7% after it said recent terror attacks had led to fewer visitors.

Merlin said the terror attack in Westminster on 22 March led to a "softer domestic, day-trip market".

"However, the subsequent attacks in Manchester and London over the past month have resulted in a further deterioration in domestic demand and, given the typical lag between holiday bookings and visitation, we are also cautious on trends in foreign visitation over the coming months."

The biggest gain on the FTSE 100 was posted by the London Stock Exchange, which rose by 5.4%, after it forecast growth in its profits margins, even though its merger with Deutsche Boerse has collapsed.

In the FTSE 250, shares in Capita jumped 15.2% after the outsourcing company reported signs of recovery.

Capita - which issued a number of profit warnings late last year - said it expected profitability to improve in the second half of 2017.

The FTSE 250 index itself ended the day at 19,859.54, a rise of 177 points or 0.9%.

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