Sterling and Asian shares rise on pause in Brexit, trade fears
Pound rallies from 20-month low after British prime minister survives no-confidence vote
Shanghai — Asian shares and the pound moved higher on Thursday as investors breathed a sigh of relief after British Prime Minister Theresa May survived a no-confidence vote, and as China appeared to be taking more steps to meet US demands to open its markets. Sterling rallied from a 20-month low after the vote, and was holding on to gains early in the Asian trading day, trading at $1.2629. Any respite for sterling was expected to be brief, however, as May appeared no closer to getting her EU divorce agreement through parliament, raising the risk of a chaotic exit in March. “The fact remains that the EU is highly unlikely to offer the reassurance MPs are demanding on the Irish backstop,” analysts at ING said, adding there was a risk that a parliamentary vote on the Brexit deal will not take place until later in the first quarter of 2019. “In the meantime, the lack of clarity and elevated risk of ‘no deal’ is set to see economic activity slow further,” they said. ING expects UK growth...
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.