FTSE CLOSE: Markets rally on hopes of US rate cut; FCA hits banks with clampdown on overdraft fees; Depressed pound edges up as Theresa May steps down
- The FTSE 100 closed up 1%, or 72 points, at 7,331.94
- The FCA has banned banks from charging more for unarranged overdrafts
- The pound has edged up a little overnight – £1 now currently buys €1.2702
- It is Theresa May’s last official day as PM, but she will stay on for a handover
In a move that will knock the banks but please their customers, the FCA has ploughed ahead with its decision to clamp down on higher fees for unarranged overdrafts.
Meanwhile, the pound made slight gains – trading a touch above 4-month lows – but the currency remains vulnerable to the Conservative Party leadership contest. Any advocate of a no-deal Brexit could bring about a sharp drop.