London close: Stocks rise as pound retreats after ECB

London stocks continued to push higher, underpinned by a weaker pound after rate-setters in Frankfurt in effect gave the 'green-light' to further strength in the euro and on the back of stronger than expected retail sales figures.

The FTSE 100 was up 0.77% to 7,487.87, while the pound was down 0.33% versus the dollar and off by a remarkable 1.46% against the euro at 1.2967 and 1.1147, respectively.

Over on the second-tier index, gains were a tamer 0.36% to 19,763.94.

All eyes were on the European single currency in the aftermath of the European Central Bank's policy meeting, which shot higher by 1.14% to 1.1634 versus the US dollar. Sterling also got whacked, falling by a startling 1.48% to 1.1145 against the euro.

ECB chief Mario Draghi pushed back by more than was expected against recent speculation that a shift in its QE-guidance was imminent.

However, when queried by a journalist regarding recent strength in the euro, Draghi said financing conditions in the currency bloc were still favourable.

To take note of, overnight the Bank of Japan also sounded a dovish note.

In terms of UK data, data releases on Thursday were broadly supportive of equities. ONS reported that retail sales volumes rose 0.9% in June, bouncing back from the 1.5% fall the prior month (revised down from its initial 1.1% estimate) and beating the consensus estimate of 0.5%.

Sales surged 3.0% compared June last year when the Brexit referendum dampened the mood, up from a 0.6% year-on-year rise in May and better than the 2.5% forecast by economists.

Food sales volumes fell by 0.5% month-to-month, while clothing sales increased 0.4% - which some economists said was disappointing for what was one of the warmest Junes on record.

Yet for analysts at Barclays, "the underlying dynamics of the channels that support household consumption suggest only weakness ahead, in our view, notably on the back of negative real wage growth and a tightening of unsecured credit availability."

Meanwhile, the Council of Mortgage Lenders reported a 9% jump in gross mortgage lending for June, to £22.1bn.

On the corporate front, rental equipment firm Ashtead was the standout gainer after US peer United Rentals' second-quarter numbers beat expectations and the company lifted its 2017 earnings guidance.

Retailers Kingfisher, Next and Dunelm, were lifted on the ONS details about household goods and clothing.

International distribution and outsourcing group Bunzl ticked up after saying said it has made a binding offer to buy a group of businesses in France and has also bought a marketing services business in the UK for undisclosed sums.

Unilever edged higher after its first-half results came in stronger than expectations and the consumer goods colossus increased its guidance for full year profit margins.

Shares in Sports Direct rallied as it reported a near-60% drop in full-year underlying pre-tax on the back of the weaker pound, but its revenue came in ahead of expectations and its outlook was brighter than anticipated.

Going the other way, Anglo American reversed course to trade lower after it posted an 8% year-on-year increase in copper-equivalent production in its second quarter,while low cost carrier easyJet flew lower despite lifting its profit outlook and reporting a 16% jump in third-quarter revenue.

Moneysupermarket tumbled as it warned that adjusted operating profit for the full-year will be at the lower end of the consensus range.

Market Movers

FTSE 100 (UKX) 7,487.87 0.77%
FTSE 250 (MCX) 19,763.94 0.36%
techMARK (TASX) 3,532.83 0.54%

FTSE 100 - Risers

Ashtead Group (AHT) 1,710.00p 3.07%
Provident Financial (PFG) 2,390.00p 3.06%
Next (NXT) 3,783.00p 2.80%
British American Tobacco (BATS) 5,425.00p 2.59%
Kingfisher (KGF) 304.20p 2.39%
United Utilities Group (UU.) 898.00p 2.28%
Direct Line Insurance Group (DLG) 373.70p 2.19%
Hargreaves Lansdown (HL.) 1,345.00p 2.13%
WPP (WPP) 1,592.00p 2.05%
Imperial Brands (IMB) 3,511.50p 1.93%

FTSE 100 - Fallers

easyJet (EZJ) 1,334.00p -5.92%
International Consolidated Airlines Group SA (CDI) (IAG) 595.00p -3.88%
Anglo American (AAL) 1,100.50p -2.87%
Shire Plc (SHP) 4,080.50p -1.98%
Rio Tinto (RIO) 3,385.50p -1.77%
Glencore (GLEN) 318.70p -1.02%
Rolls-Royce Holdings (RR.) 916.50p -0.81%
Convatec Group (CTEC) 308.10p -0.61%
CRH (CRH) 2,754.00p -0.58%
Royal Mail (RMG) 398.10p -0.43%

FTSE 250 - Risers

Sports Direct International (SPD) 335.10p 11.44%
OneSavings Bank (OSB) 397.60p 3.60%
Sophos Group (SOPH) 469.30p 3.23%
Dixons Carphone (DC.) 270.20p 2.54%
Virgin Money Holdings (UK) (VM.) 311.50p 2.40%
Pagegroup (PAGE) 490.10p 2.36%
Capita (CPI) 680.00p 2.33%
Ashmore Group (ASHM) 362.20p 2.11%
Savills (SVS) 902.00p 2.09%
Hikma Pharmaceuticals (HIK) 1,381.00p 2.07%

FTSE 250 - Fallers

Carillion (CLLN) 64.20p -5.59%
Softcat (SCT) 382.30p -3.12%
Sirius Minerals (SXX) 30.60p -2.89%
Drax Group (DRX) 324.10p -2.73%
Moneysupermarket.com Group (MONY) 350.40p -2.50%
QinetiQ Group (QQ.) 242.00p -2.50%
Redefine International (RDI) 38.64p -2.39%
Wizz Air Holdings (WIZZ) 2,612.00p -2.21%
Vedanta Resources (VED) 729.00p -2.08%
Fisher (James) & Sons (FSJ) 1,590.00p -1.97%