Published On: Fri, Oct 12th, 2018

Pound LIVE: GBP Sterling down against euro as European markets bounce back | City & Business | Finance


The FTSE 100 was up by 29.18 points, or 0.4 percent, taking it to 7,036 at just before 8:30 GMT.

This is after the blue-chip index was slumped into correction territory yesterday after falling to close at 7,006.

Germany has seen the Dax gain 1.2 percent at the open of the markets, while in France the CAC was up 1.1 percent and the Spanish IBEX 35 saw an improvement of 0.9 percent.

In Italy, where markets have been rattled by the fallout from the government’s deficit budget proposals, the FTSE MIB had gained 1 percent.

The pound was struggling to hold ground today as markets staged their recovery, with Sterling trading at €1.422.

This is up on today’s opening levels of €1.412, but down on highs of €1.454 seen yesterday.

Against the green back, the pound is trading at $1.325 after opening at $1.323.

Thursday saw the FTSE 100 hit a new six-month low at the start of trading, with the Footsie sinking by -121.99 points, or 1.7 percent – levels last seen back in April.

Experts have warned German inflation data could send the exchange rate dipping even further today.

The pound has seen benefits from Brexit breakthroughs in recent weeks, but yesterday saw Cabinet minsters express concerns about EU divorce compromises at a meeting in Downing Street.

Liam Fox, Michael Gove and Dominic Raab are the key political players who are thought to have attended the talks, according to the BBC, with fears over the UK being stuck in the customs union for an open-ended period.

The EU has already laid out suggestions that Northern Ireland could stay in the customs union if a trade deal is not thrashed out quick enough.

However, the UK has blasted the idea and claimed this would create a border between Northern Ireland and Great Britain.

Euro traders will be keeping their eye on tensions between Italy and the EU today after the Italian parliament approved the government’s deficit goal.

Rome has been locked in a bitter war of words with Brussels after being forced to defend proposals to set out a deficit goal of 2.4 percent of GDP for 2019 – three times the previous administration’s target.

The European Commission has warned Italy’s government, made up the ruling League and the anti-establishment Five Star party, that its budget plans will break eurozone spending rules.

The Italian government has already pledged to reduce the headline deficit to 2.1 percent in 2020 and to 1.8 percent in 2021.



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Pound LIVE: GBP Sterling down against euro as European markets bounce back | City & Business | Finance