ZCZC
BCN-08
EUROPE-MARKETS
Pound rebounds as Brexit storm rages in UK
LONDON, 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 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 UK currency had 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 clamours 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.
May made a rare outing on a radio phone-in after a tumultuous Thursday in
which ministers resigned and members of her own party plotted to oust her.
Brexiteer MPs fear the draft deal would keep Britain shackled to the
Brussels, while EU supporters say it would leave the UK on worse terms than
it has inside the bloc.
MORE/HR/0938
ZCZC
BCN-09
EUROPE-MARKETS 2 LAST LONDON
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.
On Wall Street, the tech sector was sold again after results or guidance
from chip makers Nvidia and Applied Materials, they said.
– Oil up –
Asian stock markets earlier swung throughout Friday’s session as investors
weighed China-US trade speculation.
Hopes that the world’s top two economies are making efforts to resolve
their painful tariffs standoff provided support to global markets, though
conflicting reports were keeping any optimism in check.
On Thursday it was reported that China had handed the US a number of trade
concessions as part of a move to smooth relations ahead of a G20 summit where
Donald Trump 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.
In commodities trading, oil prices were higher, having been weighed down
by oversupply and weak demand concerns earlier this week.
Despite data showing another jump in US stockpiles the commodity is
enjoying some much-needed buying interest after kingpin Saudi Arabia said it
plans to cut output and called on other producers to follow suit.
Prices were, however, well off early highs by the late European afternoon.
BSS/AFP/HR/0940