London — Risky assets hit the skids on Tuesday, with stocks and sterling tumbling over political uncertainty over Britain’s future ties with the EU and the policies of the incoming US president, Donald Trump. European stock markets opened broadly lower, with the exception of Britain’s blue-chip FTSE stock index, which hit a fresh record high on the back of sterling’s fall to multiweek lows — seen as beneficial to exporters. The British currency hit a 10-week low against the dollar and an eight-week low against the euro, under the cosh for a second day after weekend comments by British Prime Minister Theresa May that she was not interested in Britain keeping "bits" of its EU membership. A revival in worry that Britain could be headed for a "hard Brexit", in which it chooses to take full control of immigration and give up access to the single market, reverberated across financial markets, lifting demand for safe-haven assets such as German government bonds and gold, which rose to its ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.