FTSE 100 slides as pound rises

Traders in London Image copyright AFP

The pound climbed back above $1.27 but the FTSE 100 share index was on track for its third week of losses in a row.

Shortly after midday the FTSE 100 was down 29.88 points at 7,409.41.

Meanwhile sterling rose 0.4% against the dollar to $1.2732, and climbed 0.2% against the euro to 1.1401 euros.

The FTSE 100 often falls when the pound rises because many firms in the index operate abroad. A stronger pound means overseas earnings are worth less when changed back into sterling.

Comments from brokers were behind some of the bigger share movements. BAE Systems fell 1.8% after JP Morgan cut its rating on the company to "neutral".

Broadcasting company ITV was the biggest riser in the FTSE 100, up 2.3%, as Morgan Stanley raised its rating to "overweight".

In the FTSE 250, shares in Domino's Pizza fell 3.5% after analysts at Berenberg cut their rating on the company to "hold".