FTSE rises to 14-month high

Stockmarket-Performance-Business-700x450The FTSE 100 hit a 14-month high at close yesterday, ending 42 points higher.

The UK bluechip index was driven higher by an almost 7 per cent rise in Standard Life’s stock price after it released its half-year results.

The index ended the day at 6,851, meaning it has risen almost 10 per cent this year, having rebounded after Brexit.

Standard Life rose after its results beat expectations, with the other big risers of the day being Royal Bank of Scotland, TUI, easyJet and Standard Chartered.

However, the pound continued to fall and hit a one-month low at $1.30, amid concerns about the growth of the economy.

The Bank of England’s Ian McCafferty said yesterday in the Times that more QE was likely needed and further rate cuts could be on the horizon to boost the UK economy post-Brexit.

His comments come as the National Institute of Economic and Social Research warned of a “marked slowdown” in the UK’s economy for the three months to July.

Data from the organisation shows that the period saw 0.3 per cent economic growth, compared to 0.6 per cent in the three months to the end of June.

NIESR also warned of an “evens chance” of a technical recession.

The NIESR said: “This estimate is consistent with our latest quarterly forecast, which forecasts a contraction of 0.2pc in the third quarter of this year, as a whole.”