With Theresa May potentially about to lose a second MP in the space of a week – first Michael Fallon, and now Priti Patel (the latter of whom has drawn focus from Boris Johnson’s latest fireable offence) – sterling isn’t looking too happy.
Another bout of chaos – though this government is admittedly always in a state of low-level instability – ahead of December’s next round of negotiations with the EU seems to have reminded the pound of how the country’s uphill Brexit battle has a backdrop of utter political incompetence. That’s sent the currency half a percent lower against the dollar and 0.6% down against the euro, erasing much of the gains seen earlier in the week.
Normally a decline of that size would be like catnip for the FTSE. However, the UK index could only manage a paltry 0.1% rise, as it struggles with a Persimmon-led fall in the housing sector and another 3.5% drop from Associated British Foods (LON:ABF). At least Marks & Spencer picked up as the day went on, the high street staple reversing its morning reversing to rise 2.2%, with investors choosing to focus on the improvements in the clothing business rather than the food division’s continued disappointments.
Elsewhere the Dow Jones dipped 20 points after the bell, the index drifting away from its all-time highs after finding little reason to ascend to a fresh peak. As for the Eurozone, the DAX and CAC fell 0.2% and 0.3% respectively in the face of the euro’s gains against the dollar and the pound.