x
Breaking News
0

Sterling climbs, shares fall, after Brexit formally triggered

Stock MarketsMar 29, 2017 08:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Wads of Pound Sterling banknotes are pictured at the GSA company's headquarters in Vienna

LONDON (Reuters) - Sterling hit the day's high on Wednesday in volatile trade while shares in British companies slipped after British Prime Minister Theresa May and European Council President Donald Tusk said Britain had formally triggered its divorce from the EU.

May's letter to Tusk, which she quoted from to parliament on Wednesday, said Britain and the EU must work together to minimize disruption and provide as much certainty as possible, and that a deep, special partnership was in the best interests of both sides.

Having earlier hit an eight-day low of $1.2377 , sterling jumped to $1.2478 after it was confirmed that the letter had been sent, up from around $1.2448 beforehand and leaving the currency up 0.2 percent on the day.

"I think this is largely attributed to reducing one element of uncertainty in the process of actually triggering Article 50 but also the conciliatory tone in Prime Minister May's statement...focusing on the partnership with the EU and achieving a mutually beneficial relationship," said Alexandra Russell-Oliver, a currency analyst at Caxton FX.

Sterling also hit day's highs against the euro (EURGBP=D3).

Britain's FTSE 100 (FTSE) index - most of whose earnings are denominated in other currencies - hit a session low after May triggered Article 50, down 0.3 percent.

British mid-caps also fell, down 0.1 percent.

British government bond futures drifted higher, tracking German Bunds (FGBLc1), to touch a session high around 20 ticks up from Tuesday's close.

Sterling climbs, shares fall, after Brexit formally triggered
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
 
 
 
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email