Oil prices resumed their decline on Tuesday as Donald Trump urged Saudi Arabia and other major oil exporters not to cut production, weighing on FTSE 100 firms.
The pound had a volatile trading period on Monday amid the latest Brexit headlines, recovering from an early sell-off on the back of comments by Michel Barnier before taking a weaker turn.
Rumours of an agreement between the UK and EU on financial services sent the pound higher on Thursday, supported by the outlook from the Bank of England as it maintained interest rates.
Top-flight shares in London surged ahead on Wednesday as global sentiment picked up.
Top-flight shares in London dodged a day of declines on European markets on Tuesday, as the weaker pound and some positive company updates supported the FTSE 100.
The climax of a “bearish” week on the markets saw £16.7 billion wiped off the value of the FTSE 100 on Friday, following several days of volatility.
The pound dipped again on Wednesday as Brexit tensions and questions around Theresa May’s leadership fuelled uncertainty.
The FTSE 100 hit a seven-month low on Tuesday amid a “horrible” day for European markets.
The pound dropped on Monday after Prime Minister Theresa May said that 95% of the Brexit deal had been agreed, but that issues including the Irish border were still not settled.
Sterling was given a lift on Tuesday after official figures showed that British workers enjoyed the strongest wage growth since the financial crisis.