Despite the second half of the decade so far being dominated by political upsets, the pound was pretty confident it knew the result of Wednesday evening’s vote of no confidence in Theresa May.
Against the dollar sterling surged 0.9%, sending cable back towards $1.265; against the euro, meanwhile, the pound rose half a percent, striking €1.11 in the process. This as investors banked on May surviving this latest challenge to her leadership, with the Prime Minister expected to end the day still in power. And even if the vote is an unwelcome distraction from the real issues at hand, a May triumph would in theory reduce the chances of a ‘no-deal’ Brexit,
The pound’s gains meant that the FTSE wasn’t quite as shiny as its peers this Wednesday. Still, the UK index managed to reclaim nearly 60 points, allowing it to creep back towards 6900. The DAX touched 10950 as it rose 1.2%, with the CAC really letting rip as it surged 1.9%.
As for the Dow Jones, it added 350 points as the bell rang on Wall Street, soaring past 24700 thanks to the latest movements from China. Not only is the country cutting tariffs on US cars from 40% to 15%, Beijing is set to replace its Made in China 2025 plan with one that is slightly less antagonistic to its rival nations on a manufacturing front, while also increasing its openness to foreign companies.
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