London shares were higher this morning but sterling lost ground as the fight to replace Theresa May as leader of the governing Conservative Party shifted up a gear.
Stock markets have brushed off the disastrous result for the ruling Conservative Party in European Parliamentary elections, but sterling was lower across the board. Attention now shifts to the question of who will succeed Prime Minister Theresa May by winning the leadership contest.
The pound and share prices were resilient this morning despite continuing deadlock over the shape of Britain’s withdrawal from the European Union. Generally cheery markets in the City contrasted with gloom in the political capital, Westminster.
The pound strengthened on foreign exchanges this morning as the government and the opposition Labour Party prepared for Brexit discussions to continue over Easter. Cabinet Office minister David Lidington has said both sides will “take stock” ten days from now.
The Brexit picture has been further clouded by a split in the opposition Labour Party and a looming vote on whatever deal the government can bring back from Brussels. But the pound is generally stronger against major currencies and the blue-chip FTSE 100 Index is higher than it was a month ago.
London stock markets were higher today as Prime Minister Theresa May flew to Northern Ireland to say she can get an agreement to a deal that suits the province. But sterling was lower after a disappointing survey of the services industry.
As Parliament debates amendments to the government’s European Union withdrawal legislation, the pound and domestic shares held their own on financial markets. But that could quickly change if legislative deadlock turns into a constitutional crisis.
Brexit related markets
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With 15 January 2019 confirmed as the date for a Parliamentary vote on the government’s Brexit deal, the FTSE 100 index was higher this morning and sterling gained ground against the euro. But fears remain that rejection of Prime Minister Theresa May’s proposals could trigger a constitutional crisis.
Sir Graham Brady, the chair of the 1922 committee, confirmed on Wednesday morning that he has received at least 48 letters from Conservative MPs calling for a vote of no confidence.
Sterling bounced off its lows yesterday as Theresa May mounted a rescue operation after pulling a vote in Parliament on her Brexit deal. The prime minister is meeting European leaders and officials seeking “clarifications” that may satisfy her critics.
Ministers are touring the UK to bolster support for the government’s Brexit deal ahead of a key vote on Tuesday. Sterling was lower this morning, while London stock markets mirrored buoyant trading on continental exchanges.
Government defeats in Parliament over its Brexit legislation were followed by lower share prices in London. But worse may be to come in the event of a full-scale constitutional crisis.
The pound was up 0.5% versus the US dollar to 1.280 US dollars.
London’s blue-chip share index was higher this morning despite deepening uncertainty about the Brexit process. But sterling was down, as were domestic UK stocks, suggesting the drawn-out UK departure is taking its toll on financial markets.
The FTSE 100 closed 1.2% higher
Traders who thrive on stress and anxiety are in for a treat during the next 12 months as Britain’s tortuous departure from the European Union promises endless market turbulence. No-one can see the future, but there are some principles that ought to help traders navigate the choppy waters ahead.
The OECD said a no-deal Brexit scenario could wipe off more than 2% from UK growth over two years.
The pound and London share prices were sanguine this morning ahead of a key Brexit Cabinet meeting tomorrow. But a UK-EU deal is far from certain with major issues unresolved.