Sterling and London stock markets were lower this morning on news that Brexit talks had faltered.
UK Government sources said talks in Brussels had hit a “real problem” over the thorny question of the border between the Irish Republic and Northern Ireland.
The news dashed the hopes that had built up of a breakthrough ahead of this week’s European Union summit.
Sterling fell against major currencies in early trading this morning. It lost 0.23% against theto €1.1353 and 0.11% against the to $1.3139.
High hopes are disappointed
Against theit was down 0.6% at 146.7050.
London’s blue-chipmade early gains but had turned tail by mid-morning, registering a 0.47% loss to 6,969.01, while the FTSE 250 index, which is more focused on domestic British firms than is the more international FTSE 100, made no early gains and was 1.01% lower by mid-morning at 18,781.5600.
Both indices have lost significant ground during the last three months. The FTSE 100 stood at 7,600.4502 on July 16 while on the same date the FTSE 250 was 20,800.5508.
Central to this are so-called backstop arrangements that would maintain frictionless trade across the Irish border while longer-term arrangements are put in place, allowing Northern Ireland to leave the European single market without facing the prospect of a “hard border” with its neighbours.