The FTSE 100 was boosted by the weaker pound on Monday, which declined after a third vote on the Prime Minister’s Brexit deal was ruled out by the speaker of the House of Commons.
By Maryam Cockar, Press Association City Reporter
March 18 2019 5:27 PM
The FTSE 100 was boosted by the weaker pound on Monday, which declined after a third vote on the Prime Minister’s Brexit deal was ruled out by the speaker of the House of Commons.
London’s top index closed 70.91 points, or 0.98%, higher at 7,299.19 while Germany’s DAX fell 0.25% but France’s CAC rose 0.14%.
Sterling was down 0.66% against the US dollar at 1.322 and 0.52% lower versus the euro at 1.167.
John Bercow told the House that another vote on Theresa May’s EU withdrawal agreement cannot take place if the motion is substantially the same as last time.
MPs defeated Mrs May’s deal for second time last week, having rejected an initial version of her agreement in January.
Neil Wilson, chief market analyst at Markets.com, said the news was a “big blow for the Government as it effectively closes off another vote this week unless Mrs May can pull a rabbit out of the hat”, adding that any substantial changes to the deal seem unlikely ahead of the European Council meeting this week.
However, Mr Wilson noted that the Government had already rowed back expectations for a third vote and reports indicated that Northern Ireland’s Democratic Unionist Party, which is propping up Mrs May’s minority government, and the European Research Group were unlikely to back the Prime Minister.
The thing for traders in this kind of febrile atmosphere is that it’s not abundantly clear what this means. Does it raise or lower the prospect of a no-deal?
Neil Wilson, Markets.com
“The thing for traders in this kind of febrile atmosphere is that it’s not abundantly clear what this means. Does it raise or lower the prospect of a no-deal?
“Does it make it more or less likely that an extension to Article 50 will be longer than the short three months? Tough times trading sterling right now,” he said.
