Weaker sterling gives FTSE edge over Europe, Micro Focus dips

The pound's retreat below $1.30 helped Britain's main share index outperform European benchmarks on Monday, while individual broker updates sent some stocks lower.

Sterling fell after two polls on the weekend showed Prime Minister Theresa May's ruling Conservative party losing ground after parts of its election manifesto came under fire. The pound had risen in the last month as some expected a landslide win would allow for smoother exit negotiations with the European Union.

Along with strength in commodities stocks, the weaker pound propelled the mainly foreign-earning FTSE 100 to a 0.4 percent gain, holding near record high levels hit last week, and easily outperforming the Euro zone STOXX 600 which fell 0.2 percent.

Strong metals prices helped miners Anglo American, Fresnillo, Antofagasta and Rio Tinto up to the top of the index, gaining 1 to 1.3 percent.

While merger activity drove European shares, broker updates fuelled the biggest moves among British stocks.

Micro Focus fell 3.1 percent, the top FTSE faller after Credit Suisse research into legacy technology led them to downgrade the firm.

The bank's survey of 100 CIOs found the industry was moving away from COBOL, a programming language widely used in business and finance, and the base for some Micro Focus tools and products.

Testing company Intertek jumped to a record high after Kepler Cheuvreux upgraded it to a 'buy' in a note predicting an inflection in the cycle for the sector.