LONDON MARKETS: Shares Of Banks, Small-cap Companies Fall In London Stock Market, Amid Brexit Turmoil
15 Noviembre 2018 - 8:07AM
Noticias Dow Jones
By Barbara Kollmeyer and Mark DeCambre, MarketWatch
Pound headed for its biggest one-day loss since June of 2017
London's big banks were under pressure Thursday, but the FTSE
100 managed to stay in the black as the pound plunged after
resignations in the U.K. government over Prime Minister Theresa
May's Brexit proposal.
However, smaller-companies, more vulnerable to a weakening
currency, were seeing their shares decline with the falling
sterling.
How are markets performing?
The U.K.'s FTSE 100 was up 0.2% to 7,048.30 after finishing off
0.3% on Wednesday. However, the FTSE 250 , which reflects a broader
array of smaller-cap companies that derive a greater portion of
their revenues domestically, was down 1.5% at 18,620.52.
The British pound sank 1.5% on the day to $1.2799 for its
biggest one-day drop since June 2017
(http://www.marketwatch.com/story/pound-plunges-more-than-1-against-the-buck-as-mays-orderly-brexit-looks-in-doubt-2018-11-15).
That compares with $1.2991 late Wednesday.
Barron's: What you need to know about the Brexit agreement
(https://www.barrons.com/articles/what-you-need-to-know-about-the-provisional-brexit-agreement-1542203352?mod=hp_DAY_9)
What's driving stocks?
The resignation of Brexit Secretary Dominic Raab and Pensions
Secretary Esther McVey, plus a couple more, coming less than 24
hours after May announced cabinet backing of the deal sent ripples
of fear through U.K. markets, with talk now of a potential
leadership challenge for the U.K. leader.
The move follows a period of volatility for sterling after May
said Wednesday that she had secured approval from her cabinet for a
plan that would execute the exit British voters approved in a June
2016 referendum. A weaker pound can benefit bigger companies such
as those in the FTSE 100, as they obtain a chunk of revenues from
overseas.
What stocks are active?
Holding back the main market were losses for banks, amid
concerns the Brexit deal could be in trouble. Royal Bank of
Scotland Group PLC (RBS.LN) (RBS.LN) slid nearly 9%, while Lloyds
Banking Group PLC
Building companies were also under pressure as Brexit
uncertainty could also hit housing demand, with Persimmon PLC
(PSN.LN) and Taylor Wimpey PLC (TW.LN) down around 9% each.
(END) Dow Jones Newswires
November 15, 2018 08:52 ET (13:52 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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