Global shares slump but the pound perks up
Sterling has taken a beating, tumbling to 31-year lows last week
London — Shares dipped worldwide towards three-week lows on Wednesday as a dour start to the US earnings season weighed on sentiment, while Britain’s battered currency rose for the first time in five days.Sterling rose more than 1% versus the dollar and euro after British Prime Minister Theresa May offered to give legislators some scrutiny of the process of leaving the EU.The currency has taken a beating, tumbling to 31-year lows last week, on fears that Britain was heading for a "hard Brexit" that would have it leaving the EU’s single market when it quits the bloc."After weeks of tough rhetoric pushing sterling into a trading environment closer to an emerging-market currency, the government may aim to stabilise markets, with its rhetoric and suggestions now possibly shifting in tone," Morgan Stanley’s head of currency strategy, Hans Redeker, said.European shares followed Asian and US markets lower, with Germany’s DAX, France’s CAC and Britain’s FTSE all nudging down in early trade....
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.