A lack of clarity on the Brexit ‘breakthrough’ forged in the early hours of this morning kept sterling earth-bound today. At 4.30pm the pound was down -0.78% while slipping -0.64% against the euro at 1.1378. All some distance from a post-deal pound rally anticipated by some – before the December winter morning sun hit the realpolitik detail.
Some City watchers are now clearly downbeat about a sterling break-out. They predict the pound is on course for more ‘realistic’ levels based on economic fundamentals – plus (just in case) factoring in risk of a UK government break-up if Brexit tensions overwhelm the Cabinet.
In the US things looked better for the dollar, up +0.2% to 93.97, following the release of crucial US labour department non-farm job numbers. The new job count rose to 228,000 in November with unemployment steady at a 17-year-low of 4.1%.
The better US jobs news supports the likelihood of a new Fed rate rise this month (some of the job growth would have responded to the hurricane season chaos). What won’t go down so well is the close-to-stagnant US wages growth – November's average hourly earnings growth came in at +0.2%, below consensus predictions.
Tonight the FTSE 100 finished +1% higher at 7,393 with Berkeley Group Holding shares blazing +7% higher.
- UK FTSE 100 7,393.96 +1.00%
- DAX 13,158.88 +0.87%
- CAC 40 5,403.84 +0.37%
- Dow 24,244.76 +0.13%
- S&P 500 2,645.28 +0.31%
- Nasdaq 6,857.61 +0.64%
- Nikkei 225 22,811.08 +1.39%
- Gold 1,251.20 -0.15%
- Oil WTI 57.09 +0.74%
Hard Brexit agreement detail still needed – Rating agencies
Some credit agencies were on hand with wet towels in case of Brexit deal fervor (and there are some reports a final divorce bill could be well in excess of £40bn though estimates still remain highly varied).