Merry Xmas For ABF's Primark; Pound Takes Latest Brexit Buffoonery On The Chin

Once again the pound broadly took Britain’s political chaos on the chin, the currency only posting a mild decline despite the country being caught in Brexit deadlock.

Overnight sterling avoided the kind of lurching performance that had greeted Theresa May’s historic Commons defeat on Tuesday, the PM’s no-confidence vote survival seemingly priced in beforehand.

Now the pound appears to be in wait and see mode, dipping 0.2% against the dollar and 0.1% against the euro, a more severe decline prevented by the lessening chances of a ‘no deal’ Brexit – just ask Philip Hammond, who, in a leaked conference call, tried to reassure businesses by claiming a deal-less exit could be taken ‘off the table’ within days.

While sterling held its nerve, the European indices were looking a bit tired. The FTSE slipped under 6850 as it fell 0.3%, in large part thanks to its banking sector and ITV's (LON:ITV) continued issues, with the CAC down 0.6%, and the DAX shedding 0.8% following Deutsche Bank's (LON:0H7D) own 3% slide.

Bucking the recent retail gloom, grocery-fashion hybrid Associated British Foods (LON:ABF) climbed 5% after the bell, grazing £23 as Primark’s aggressive expansion countered a slight dip in like-for-like sales. Total UK sales at the high street brand were up 1% for the 16 weeks to January 5th, a mild increase that looks positively robust compared to its peers. ABF also crucially kept its full year guidance unchanged, with Primark still expected to post a rise in profits despite the previously detailed issues in November.

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