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| FTSE rises above 7,000 as pound falls again | FTSE rises above 7,000 as pound falls again |
| (35 minutes later) | |
| The FTSE 100 share index has risen above 7,000 for the first time since May 2015 as sterling fell to a 31-year low against the dollar. | The FTSE 100 share index has risen above 7,000 for the first time since May 2015 as sterling fell to a 31-year low against the dollar. |
| The pound dipped to $1.2766 in early trading on Tuesday - its lowest level against the US dollar since 1985. | The pound dipped to $1.2766 in early trading on Tuesday - its lowest level against the US dollar since 1985. |
| Sterling has fallen for the past two days as traders study the Conservative Party conference for Brexit details. | Sterling has fallen for the past two days as traders study the Conservative Party conference for Brexit details. |
| The pound fell 0.3% against the euro to €1.1431, while the FTSE 100 was up 1.2% at 7,069 points. | |
| On Sunday, Prime Minister Theresa May said she would trigger Article 50 by the end of March 2017. | On Sunday, Prime Minister Theresa May said she would trigger Article 50 by the end of March 2017. |
| Analysts say the pound has been hit by the prospect of the UK leaving the EU single market as part of the Brexit process. | Analysts say the pound has been hit by the prospect of the UK leaving the EU single market as part of the Brexit process. |
| Esther Reichelt, currency strategist at Commerzbank, said the government's apparent insistence on limiting freedom of movement was causing particular uncertainty among investors. | |
| "This increases fears of a 'hard' Brexit because so far nobody sees a possibility of achieving this without May having to accept notable restrictions when it comes to accessing the single market," she said. | |
| Connor Campbell, analyst at traders Spreadex, saud: "It seems that it is going to be hard to provide a tourniquet for sterling's recent wounds given the solidity of the newly announced Brexit timeline." | |
| Kathleen Brooks, research director at Forex.com and City Index, said the Tory party conference was turning into a sell for the pound given Mrs May's "apparent sanguine attitude to leaving the single market, preferring to focus on immigration and UK sovereignty rather than the economic fallout of Brexit". | |
| She said comments by the Chancellor, Philip Hammond, in which he warned that the UK economy was heading for a "rollercoaster" ride over the coming years, had not helped. | She said comments by the Chancellor, Philip Hammond, in which he warned that the UK economy was heading for a "rollercoaster" ride over the coming years, had not helped. |
| Although sterling has lost ground, the FTSE 100 is higher because the many international companies whose shares are traded in the UK tend to benefit from a lower pound. | |
| Profits earned abroad by multinationals such as drugs giant GlaxoSmithKline and major mining companies are worth more when converted back into sterling. | |
| That makes a company's shares appear better value when compared with the higher profits it will make, prompting a revaluation of the stock. | |
| Stock markets in Frankfurt and Paris are also higher on Tuesday. |