Related Articles
The pound and U.K.-exposed stocks fell on Wednesday as renewed fears of a hard Brexit spooked investors.
The FTSE 100
UKX, +0.21%
made slight gains but the domestically-focused FTSE 250
MCX, -0.12%
fell 0.4% as Boris Johnson ramped up the chances of a hard exit from the European Union.
The pound
GBPUSD, -0.0382%
slipped a further 0.5% to $1.3069, having reached $1.35 in the aftermath of Johnson’s election victory last week.
U.K.-facing stocks, which soared after the Conservatives secured a strong majority in the election, tumbled on Wednesday.
What’s moving the markets?
The Prime Minister moved to block any further delays to Brexit on Tuesday, introducing a law banning an extension beyond December 31, 2020. With just over a year to negotiate a U.K.-EU trade deal, concerns over a hard Brexit returned.
Wall Street climbed to record highs late on Tuesday on relief over the interim U.S.-China trade deal announced last week, but British stocks were held back on Wednesday by renewed Brexit fears.
The internationally-exposed FTSE 100 nudged 0.1% higher off the back of the weaker pound but the FTSE 250 suffered losses.
U.K. inflation held steady at 1.5%—the lowest level in three years—despite chocolate prices rising. House price growth hit its lowest level in seven years, rising just 0.7% in the year to October.
Which stocks are active?
Pearson
PSON, +1.71%
shares climbed 2.7% as the educational publisher said it would sell its remaining 25% stake in publisher Penguin Random House for $675 million. Chief Executive John Fallon will also retire in 2020, the company said.
Royal Mail fell 3.1%, house builder Persimmon dropped 3.5% and challenger bank Virgin Money slipped 2% as domestic stocks lost some of their postelection gains.
Source link
