LONDON MARKETS: Brexit Hopes Fuel Fresh Rally For The British Pound To Highest Level Of Johnson Administration
October 11 2019 - 7:56AM
Dow Jones News
By Steve Goldstein, MarketWatch
U.K. bank stocks rise
Growing hopes that U.K. and European leaders can reach an agreed
deal for Britain to leave the European Union pushed the British
pound higher for a second day on Friday.
The pound rose to $1.2645, up from $1.2444 on Thursday, a day
when the U.K. currency had its best single day percentage advance
since March.
It's the strongest sterling has been since Theresa May was prime
minister, in late June. Boris Johnson stepped into the No. 10
Downing Street on July 24.
European Council President Donald Tusk -- who has tweeted
criticism at British Prime Minister Boris Johnson -- on Friday said
he received promising signals from Ireland's Leo Varadkar that a
deal is possible.
(ttps://twitter.com/eucopresident/status/1182581870363590656)
The Times newspaper reported that Johnson on Thursday gave some
ground on the issue of Northern Ireland.
The European Commission meanwhile said Michel Barnier had a
"constructive" meeting with Brexit Secretary Steve Barclay on
Friday.
"The change in tone yesterday from the Irish government and the
silence on the U.K. side indeed suggests the U.K. has made some
notable concessions," said analysts at Citi, who said they remained
skeptical a deal can be reached by Oct. 31, and that the more
likely path is an extension of the Article 50 deadline and a
general election.
The pound's strength weighed on U.K. stocks, as the FTSE 100
increased 0.32% to 7209.66, which isn't as strong as the rise made
by European rivals. Read Europe Markets
(http://www.marketwatch.com/story/hopes-for-trade-pact-buoy-european-stocks-as-publicis-and-hugo-boss-hit-by-warnings-2019-10-11)
The Brexit hopes did lift U.K. banks Royal Bank of Scotland
(RBS.LN) , which surged 12%, and Lloyds Banking Group (LLOY.LN) ,
which rose 10%. The big multinational pharmaceuticals lost ground,
with GlaxoSmithKline (GSK.LN) falling 4% and AstraZeneca (AZN.LN)
losing 3.2%.
(END) Dow Jones Newswires
October 11, 2019 07:41 ET (11:41 GMT)
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