Sterling advanced yesterday approaching its strongest level in three weeks against the euro, after Bank of England policymakers said China’s slowdown hasn’t shaken their conviction that the time for the first UK interest-rate increase since 2007 is coming nearer.

Portugal’s government bonds advanced, with 10-year yields dropping below 5% for the first time since August 2010, as a recovery in the region’s most indebted economies attracted investors.

BETTER-than-expected business sentiment data from Germany failed to halt falls on international stock markets yesterday but helped slow their declines.