London stocks down as pound gains thanks to Brexit deal



[ad_1]

The UK's main stock index closed lower on Thursday, weakened by weak stocks and banks and a strong pound as the key features of a key Brexit deal came to an end.

Investors were nervous after the losses suffered late Wednesday by US stocks. These markets are closed Thursday for Thanksgiving, and will also close early Friday, which could mean close deals to end the week in London.

How are the markets behaving?

The FTSE 100

UKX, -1.28%

fell 1.3% to 6,960.32, after closing up 1.19% on Wednesday – the best one-day percentage gain for the FTSE 100 since September 21st, according to Dow Jones Market Data.

The pound

GBPUSD, + 0.8219%

rebounded to $ 1.2875 after closing at $ 1.2776 Wednesday night in New York. The pound climbs as the United Kingdom and the EU reach an agreement on Brexit.

What is the conduct of stocks?

Sterling took a leap forward after learning that EU and UK negotiators had reached an agreement on the outline of their future relations with the UK, a feat that the British prime minister Theresa May hopes to use it to gather the much-needed domestic support for her Brexit deal. The announcement comes before the official EU summit Sunday, during which the leaders are expected to approve this draft text.

But a stronger pound can weigh on the FTSE 100, as the multinational companies in the index generate most of their sales in other currencies.

Wednesday's Wall Street trading saw energy and technology stocks rebound, but stocks lost some gains just before closing. The three-day period leading up to Thanksgiving was the worst performance in seven years before the Thanksgiving action for the three major US indices.

Lily: Which markets are closed during Thanksgiving?

Equity futures reported nervousness as traders returned on Friday as oil prices fluctuated after rising Wednesday.

Which stocks are active?

Poorly received results have reduced inventories of energy company Centrica PLC

NAC -9.23%

which dropped by 9%.

Heavily weighted resource stocks have fallen under the effect of oil price and some metals pressure. BP PLC

BP + 2.92%

BP., -1.04%

fell by 1% and Rio Tinto PLC

RIO -2.13%

RIO + 1.32%

fell 2.1%.

AstraZeneca PLC, among other heavy goods vehicles

AZN, -0.27%

AZN, -1.85%

fell 1.8% and British American Tobacco PLC

BATS, -1.95%

lost 1.9%. HSBC Holdings PLC

HSBC, + 2.00%

HSBA, -1.50%

decreased by 1.5%.

Provide essential information for the US trading day. Subscribe to the free MarketWatch Need to Know newsletter. Register here.

[ad_2]
Source link