NEW YORK, Nov 17, 2018 (BSS/AFP) – The pound rebounded against the dollar
Friday, a day after a severe shellacking, as some investors were willing to
bet on British Prime Minister Theresa May getting a controversial Brexit
draft deal through parliament, dealers said.
Even as dark clouds continued to gather over the prime minister’s
political future, many felt she might just get enough support for what she
called “the best deal for Britain,” they said.
“The pound is holding on to its early Friday morning gains, on the back of
UK PM May’s radio interview in which she said her deal was the best Brexit
compromise the UK could achieve,” said Dean Popplewell, an analyst at Oanda.
In the late European afternoon the pound was up around 0.6 percent against
the dollar, off earlier highs, but slightly down against the euro.
The British currency slumped 1.7 percent against the dollar on Thursday,
the biggest daily drop for more than two years.
But analysts warned that the outlook for the British currency’s trajectory
was uncertain.
– ‘Short-lived’ –
“Stability in the pound… could be short-lived, with clamors for a vote
of no confidence from Conservative Brexiteers meaning the political upheaval
will continue as we end the week,” said Joshua Mahony, market analyst at IG
trading group.
Meanwhile in European stock markets, Brexit fears kept prices down, with
banking shares particularly under pressure “over concerns of a disorderly UK
exit from the European Union,” said analysts at Charles Schwab.
Elsewhere, Wall Street eked out a split finish — reversing some earlier
losses following hopeful comments on trade from US President Donald Trump —
but still finishing the week sharply lower after a string of earlier losses.
Trump gave the major stock indices a bump in early afternoon, announcing
that Beijing had made overtures toward resolving the US-China trade war so he
might not need to impose yet more tariffs.
In New York, oil prices also ended lower for the sixth straight week but
benchmark WTI crude was flat.
Exxon Mobil added one percent while fellow Dow member Chevron grew 1.8
percent.
“Oil and gas stocks are doing well, because oil prices are off their lows.
We seem to have found a floor in that sector,” Chris Low of FTN told AFP.
Asian stock markets earlier swung throughout Friday’s session as investors
weighed China-US trade speculation.
Trump said China offered a list of trade concessions as part of a move to
smooth relations ahead of a G20 summit where he is expected to meet Chinese
President Xi Jinping.
The Financial Times said the two sides were stepping up efforts and that
US Trade Representative Robert Lighthizer had told business leaders the next
round of tariffs would be put on hold. While Lighthizer’s office denied that,
observers said the news still provided some hope.
– Key figures around 2200 GMT –
Pound/dollar: UP at $1.2826 from $1.2778 at 2200 GMT
Euro/pound: UP at 88.99 pence from 88.64 pence
Euro/dollar: UP at $1.1415 from $1.1325
London – FTSE 100: DOWN 0.3 percent at 7,013.88 points (close)
Frankfurt – DAX 30: DOWN 0.1 percent at 11,341.00 (close)
Paris – CAC 40: DOWN 0.2 percent at 5,025.20 (close)
EURO STOXX 50: DOWN 0.3 percent at 3,180.74 (close)
Tokyo – Nikkei 225: DOWN 0.6 percent at 21,680.34 (close)
Hong Kong – Hang Seng: UP 0.3 percent at 26,183.53 (close)
Shanghai – Composite: UP 0.4 percent at 2,679.11 (close)
Oil – Brent Crude: UP 14 cents at $66.76 per barrel
Oil – West Texas Intermediate: FLAT at $56.46