LONDON MARKETS: Pound Dips, FTSE 100 Futures Point To Steady Start After Brexit-vote Delay
October 21 2019 - 2:10AM
Dow Jones News
By Barbara Kollmeyer, MarketWatch
Sterling hovers at May highs
The British pound slipped, while FTSE 100 futures indicated a
steady start for stocks on Monday, after U.K. lawmakers voted to
ask for a Brexit-deadline delay over the weekend.
The pound dipped 0.6% against the dollar to $1.2899 versus
$1.2974 seen late Friday in North American trading. Still, a near
5% gain in October has kept the pound near levels not seen since
May. FTSE 100 futures, meanwhile, indicated a flat open for the
index when it opens later.
Opinion:Johnson lost again. But his Brexit deal is likely to
succeed
(http://www.marketwatch.com/story/johnson-lost-again-but-his-brexit-deal-is-likely-to-succeed-2019-10-19)
After a crucial Parliamentary vote failed to get off the ground
on Saturday, Prime Minister Boris Johnson was forced to send a
letter to the EU asking for a three-month Brexit delay. Johnson,
who is opposed to any delay, is expected to try to win
parliamentary approval for his plan on Monday as the Oct. 31 Brexit
deadline draws nearer.
Goldman Sachs analysts said they expect the deal will eventually
pass, and for that reason expect the pound could rally to $1.35,
though others were more cautious.
"So far, pound traders are content that a disorderly Brexit will
likely be avoided in two weeks. Yet an early general election and
maybe another Brexit referendum are on the U.K.'s political agenda
for the coming months," said Ipek Ozkardeskaya, senior market
analyst, told clients in a note.
Read: So what's next after the U.K. parliament's non-vote on
Brexit?
(http://www.marketwatch.com/story/so-whats-next-after-the-uk-parliaments-non-vote-on-brexit-2019-10-19)
As for stocks, the analyst said ongoing Brexit uncertainties
could trigger volatility as that end-month deadline nears. And
"small, midcap stocks would be more exposed than the blue-chip
stocks which benefit from dollar denominated revenues," said
Ozkardeskaya.
(END) Dow Jones Newswires
October 21, 2019 01:55 ET (05:55 GMT)
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