LONDON MARKETS: Sterling Drops And FTSE 100 Up After Latest Brexit Developments
By Barbara Kollmeyer, MarketWatch
Major oil companies higher, housebuilders lower
The U.K. pound fell on Wednesday, which provided support for the
FTSE 100, as investors absorbed the latest Brexit developments and
prospects for more political upheaval.
Lawmakers approved a measure advancing Prime Minister Boris
Johnson's Brexit deal in Parliament on Tuesday, but rejected a
three-day approval timetable
proposed by the government to meet the Oct. 31 deadline to leave
the European Union. The government has already asked for an
extension to the end of January 2020, and European Council
President Donald Tusk said on Twitter he will recommend
that request is granted.
Some believe a general election could be on the cards, given
that Johnson had such slim support for his deal. In the event of a
Johnson victory, he can likely implement his Brexit plan without
too much trouble, but an opposition victory could open the door to
a second referendum on EU membership, said analysts at Danske Bank
in a note to clients.
"Regardless, it is difficult to see a path to a no-deal outcome
anymore, which also explains why a lot of negativity has been
priced out of the GBP," said the analysts.
The pound , which tumbled Tuesday after the timetable vote,
slipped further to $1.2864, versus $1.2873 seen in late North
American trade the same day. The FTSE 100 index rose 0.2% to
Among stocks on the move, oil companies were supporting the U.K.
index after a report that big oil producers will consider deeper
production cuts when they meet in December. BP (BP.LN) (BP.LN) rose
0.8% and Royal Dutch Shell (RDSA.LN) (RDSA.LN) gained 1%.
Housebuilders were weaker across the board, with Persimmon
(PSN.LN) slipping 1.8%, Barratt Developments (BDEV.LN) down 1.5%
and Taylor Wimpey (TW.LN) off 1.5%.
(END) Dow Jones Newswires
October 23, 2019 05:44 ET (09:44 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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