12:06

Away from Davos again, and European markets have closed for the day, with the UK the focus of attention.

A positive reaction to UK prime minister Theresa May’s Brexit speech, notably the promise that parliament would be able to vote on any deal with the U, helped push the pound almost 3% higher, its biggest daily rise since 1998.

Sterling was already edging higher before the speech, recovering some ground after the government’s hard Brexit suggestions at the weekend. A weak US dollar as Donald Trump said the American currency was overvalued helped here, as did stronger than expected UK inflation figures which suggested the next move in UK interest rates would be upwards.

The jump in the pound, conversely, knocked back the FTSE 100, which recorded its biggest daily fall since the immediate aftermath of the Brexit vote last June. The FTSE 100 has been boosted for several months by the fall in the pound, which helps the overseas earners and exporters which dominate the leading index.

So the rise in sterling - which is currently 2.8% higher against the dollar at $1.2382 and up 1.87% against the euro at €1.1577 - has had the opposite effect, and the FTSE 100 has fallen 1.46% to 7220.38.

European markets have edged lower, with Germany’s Dax down 0.13% and France’s Cac closing 0.46% lower.

In the US, the Dow Jones Industrial Average is down 29 points or 0.15%.