LONDON MARKETS: Pound Dips, FTSE 100 Steady As Boris Johnson's Bid To Hold New Brexit Vote Rejected
By Barbara Kollmeyer, MarketWatch
Banks rise on belief no-deal Brexit can be avoided
The British pound traded flat on Monday after U.K. Prime
Minister Boris Johnson was denied the possibility of trying to get
his Brexit deal pushed through Parliament after a vote was
frustrated over the weekend.
The pound flattened against the dollar to $1.2981 versus $1.2974
seen late Friday in North American trading. A 5.8% gain in October
has kept the pound near levels not seen since May. The FTSE-100
meanwhile, rose 0.2% to 7,168.29.
Opinion:Johnson lost again. But his Brexit deal is likely to
After a crucial Parliamentary vote failed to get off the ground
on Saturday, Prime Minister Boris Johnson was forced to send a
letter to the EU asking for a three-month Brexit delay. Johnson,
who is opposed to any delay, wanted to try to win parliamentary
approval for his plan on Monday as the Oct. 31 Brexit deadline
However, U.K. House of Commons Speaker John Bercow said Monday
afternoon that Prime Minister Boris Johnson cannot hold a new
Brexit vote, saying it "would be repetitive and disorderly,"
according to media reports. The government will now be left to get
the legislation required for Britain's departure from the European
Union through parliament
Goldman Sachs analysts said they expect the deal will eventually
pass, and for that reason see the pound rallying to $1.35
though others were more cautious.
"So far, pound traders are content that a disorderly Brexit will
likely be avoided in two weeks. Yet an early general election and
maybe another Brexit referendum are on the U.K.'s political agenda
for the coming months," said Ipek Ozkardeskaya, senior market
analyst, told clients in a note.
Read: So what's next after the U.K. parliament's non-vote on
As for stocks, the analyst said ongoing Brexit uncertainties
could trigger volatility as that end-month deadline nears. And
"small, midcap stocks would be more exposed than the blue-chip
stocks which benefit from dollar denominated revenues," said
Banking stocks led the gain, which analysts attributed to a
belief that a no-deal Brexit would be averted. Lloyds Banking Group
PLC (LLOY.LN) (LLOY.LN) rose 2%.
Shares of Smith & Nephew PLC (SN.LN) slid nearly 5% after
the medical device maker said Chief Executive Namal Nawana will
step down at the end of the month and be succeeded by Roland
(END) Dow Jones Newswires
October 21, 2019 11:42 ET (15:42 GMT)
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