LONDON MARKETS: Pound Pulls Back From Three-month Highs As Hopes Dim Over Brexit Agreement
14 Octubre 2019 - 08:40AM
Noticias Dow Jones
By Barbara Kollmeyer, MarketWatch
Most plausible scenario would be the extension of the Brexit
deadline
Fresh concerns that U.K. and European leaders may not reach a
deal by October 31 weighed anew on the pound Monday, yanking it
down from a three-month high seen late last week.
The pound slumped to $1.2573 against the dollar, a drop of 0.6%
on the session so far.
Sterling saw its best two-day run in over a decade late last
week. On Friday, it reached as high as $1.2706
(http://www.marketwatch.com/story/brexit-hopes-fuel-fresh-rally-for-the-british-pound-2019-10-11),
its strongest since Theresa May was prime minister before Boris
Johnson took over in July. On Thursday, the pound saw its best
single-day percentage gain since March.
The gloom returned for sterling amid reports that European Union
and British negotiators, who were working over the weekend to reach
a deal before the Oct. 31 deadline, hadn't made a breakthrough as
of Sunday evening, The Wall Street Journal
(https://www.wsj.com/articles/brexit-deal-hangs-in-balance-as-deadline-looms-11570997960?mod=mktw)
reported. Given how divided the two sides are, even a deal outline
looked tough, said diplomats cited in the report.
"A lot of work remains to be done," the EU said in a statement
(https://ec.europa.eu/commission/presscorner/detail/en/STATEMENT_19_6073),
following a briefing by the union's chief negotiator Michel Barnier
to EU diplomats. EU leaders will meet on Thursday and Friday to see
if they can reach an accord.
The pound rose Friday after European Council President Donald
Tusk said he had received promising signals from Ireland's Leo
Varadkar that a deal was possible. Attempts to reach a deal have
run into difficulties over plans for keeping an open border between
EU member Ireland and the U.K.'s Northern Ireland.
Read:Brexit deal not there yet, says Irish foreign minister
(http://www.marketwatch.com/story/brexit-deal-not-there-yet-says-irish-foreign-minister-2019-10-14)
Even if U.K. negotiators reach an agreement with Europe, any
deal could still see resistance in the U.K. Parliament, analysts
noted.
"There is only a slim chance of seeing a Brexit deal, which
would make everyone happy, reached within the next two weeks. The
most plausible scenario would be the extension of the Brexit
deadline," said Ipek Ozkardeskaya, senior market analyst, at London
Capital Group.
But not everyone was negative on the prospects of a deal. Nordea
Investment's senior macro strategist, Sebastian Galy said he thinks
the U.K. is probably closer to a deal than markets believe. "This
tells in crunch time as it did with Spain, Greece and Italy," he
told clients in a note, adding that the Labour Party probably
doesn't want to be credited with a so-called hard Brexit.
"The odds of a deal that can be passed by parliament are
therefore under-estimated by the market with obvious implications
for the pound, U.S. assets, German/French/Netherland equities.
Common sense is said to be an uncommon valor, yet I would bet that
it has been found again," said Galy.
The FTSE 100 was down 0.6% to 7,200.86.
(END) Dow Jones Newswires
October 14, 2019 09:25 ET (13:25 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
FTSE 100
Gráfica de índice
De Feb 2024 a Mar 2024
FTSE 100
Gráfica de índice
De Mar 2023 a Mar 2024