Stocks, pound rally as tweaked Brexit deal soothes investor worries

Credit: Reuters Studio
Published on March 12, 2019 - Duration: 01:26s

Stocks, pound rally as tweaked Brexit deal soothes investor worries

Last-minute tweaks to Britain's deal to leave the EU triggered gains across global stocks and propelled sterling higher on Tuesday, soothing investor worries about a possible no-deal exit that has unnerved financial markets in recent months.

David Pollard reports.


Stocks, pound rally as tweaked Brexit deal soothes investor worries

Anxious times for Britain ahead of a crunch Brexit vote on Tuesday.

This was late Monday: Theresa May in Strasbourg - obtaining some last-minute concessions on the UK-EU divorce agreement.

Enough at least to keep some ministers on side.

(SOUNDBITE) (English) BRITAIN'S FOREIGN MINISTER, JEREMY HUNT, SAYING: "These are legally significant changes.

I hope parliament will see that the Prime Minister has listened to parliament's concerns about the backstop." (SOUNDBITE) (English) BRITAIN'S SECRETARY OF STATE FOR INTERNATIONAL DEVELOPMENT, PENNY MORDAUNT, SAYING: "My message to colleagues today is to support this deal.

It's the only way we can really guarantee to deliver Brexit." The last-minute tweaks to the deal drove sterling up more than one and half per cent from Monday's lows.

Gains in Asian equities extended to Europe, where the pan-European STOXX 600 moved into the black.

(SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "The Frankfurt stock exchange is a bit more optimistic because the British parliament might approve a Brexit deal after all." Though - as the clock ticked down to a vote due at around 1900gmt - it was unclear whether May would get sufficient support to get the deal through.

And even if she does, lawmakers may still decide a Brexit delay beyond March 29th is necessary.

In the meantime, new data shows the economy picked up in January.

UK services more than reversed their December fall and there was a turnaround in manufacturing.

If, possibly, only temporary .... Bank of England projections see Britain as on course for its weakest growth in 10 years in 2019.

You are here

You might like