Pound falls again amid Brexit chaos as US stocks rally
British Prime Minister Theresa May has headed back to Brussels on a last-gasp mission to beg EU leaders for more time to deliver a Brexit deal that was twice rejected by her own parliament (Aris Oikonomou)
New York (AFP) – The pound fell further as EU leaders met in Brussels on Thursday to consider a Brexit delay, while Wall Street stocks bounced as investors shrugged off worries about the US economy.
Sterling, seen as a barometer in Britain’s long-running Brexit saga, slid on rising fears that the country could crash out of the EU without a deal.
British Prime Minister Theresa May was back in Brussels on a last-gasp mission to beg EU leaders for more time to deliver a Brexit deal that was twice rejected by her own parliament.
May declared that she is “determined” to deliver Brexit, after formally requesting a three-month delay on Wednesday.
However, investor fears persist that the 27 other EU leaders could refuse the request, potentially sending Britain crashing out of the bloc in just eight days.
The pound, which started the day at nearly $1.32, fell as low as $1.3004 during the day before recovering somewhat.
“For the third time this week investors ignored solid UK economic data, distracted by Brexit drama,” said City Index senior analyst Fiona Cincotta.
British retail sales rose 0.4 percent in February from the previous month, official data showed, illustrating that shoppers have not been frightened off from making purchases by Brexit.
However, the Bank of England expressed concern that further “uncertainties” over a “cliff-edge” no-deal Brexit “could have a significant effect on spending” by businesses.
As expected, it held its main interest rate steady at 0.75 percent.
– Wall Street rallies –
Meanwhile, the broad-based S&P 500 jumped 1.1 percent as Wall Street shrugged off doubts about the US economy following the Fed’s surprisingly dovish announcement on Wednesday.
US stocks had sold off on Wednesday after the Fed signaled it planned no interest rate increases in 2019, raising doubts about .
But Thursday’s rally showed investors believe “the Fed will do what it can to please the markets,” said Meeschaert Financial Service’s Gregori Volokhine, adding that money managers fear losing out on more gains later in the year.
Apple surged 3.7 percent on positive buzz ahead of a March 25 event expected to unveil a new streaming service. Apple was upgraded by Needham and its price target was lifted by Citigroup.
Levi Strauss, returning to the public markets for the first time in nearly 35 years, soared 31.8 percent from its initial public offering price. Analysts said the positive reaction to the offering lifted expectations for larger initial public offerings later in the year, including from Lyft and Uber.
But biotech company Biogen plunged 29.2 percent after it halted clinical trials for a medication once thought to offer promise for treating Alzheimer’s disease.
– Key figures around 2040 GMT –
New York – DOW: UP 0.8 percent at 25,962.51 (close)
New York – S&P 500: UP 1.1 percent at 2,854.88 (close)
New York – Nasdaq: UP 1.4 percent at 7,838.96 (close)
London – FTSE 100: UP 0.9 percent at 7,355.31 (close)
Frankfurt – DAX 30: DOWN 0.5 percent at 11,549.96 (close)
Paris – CAC 40: DOWN 0.1 percent at 5,378.85 (close)
EURO STOXX 50: DOWN 0.2 percent at 3,367.40 (close)
Hong Kong – Hang Seng: DOWN 0.9 percent at 29,071.56 (close)
Shanghai – Composite: UP 0.4 percent at 3,101.46 (close)
Tokyo – Nikkei 225: Closed for a public holiday
Pound/dollar: DOWN at $1.3102 from $1.3198 at 2100 GMT on Wednesday
Euro/pound: UP at 86.77 pence from 86.48 pence
Euro/dollar: DOWN at $1.1369 from $1.1413
Dollar/yen: UP at 110.80 yen from 110.70 yen
Oil – Brent Crude: DOWN 56 cents at $67.94 per barrel
Oil – West Texas Intermediate: DOWN 32 cents at $59.91
burs-jmb/dg
Disclaimer: This story is published from a syndicated feed. Siliconeer does not assume any liability for the above story. Validity of the above story is for 7 Days from original date of publishing. Content copyright AFP.