FTSE dips after pound makes gains
The FTSE 100 is down in early trading, weighed down partly by a stronger pound.
Here are the scores so far across European markets:
- Germany’s DAX: +0.5% at 11,607
- France’s CAC: +0.1% at 5,386
- Italy’s FTSE MIB: -0.3% at 21,301
- Spain’s IBEX: +0.2% at 9,374
- Europe’s STOXX 600: +0.2% at 381
Analysts at Goldman Sachs say the chances of a no-deal Brexit have actually increased rather than diminished.
By postponing Brexit day by at least a fortnight, the UK and the EU have kept all options in play, for now.
They cut the chances of MPs voting through Theresa May’s deal to 50% from 60%, and raised the chances of a no-deal Brexit to 15% from 5%.
Introduction: Pound picks up after Brexit extension
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
The pound has tended to be the Brexit barometer as far as investor sentiment goes, with sterling reacting to the ups and downs of the negotiations.
The latest twist in the Brexit saga is no different. The pound lurched more than 1% lower on Thursday when it looked like a no-deal exit next week was a real possibility. But its fortunes were revived when EU leaders in Brussels agreed to a Brexit deadline extension after hours of talks that ran late into the night.
A handy explainer from Donald Tusk, president of the European Council:
The pound is currently up 0.3% against the dollar at $1.3140, and up 0.2% against the euro at €1.1540.
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