The pound slumped more than one per cent versus the dollar and euro on Wednesday as <a href="https://www.wionews.com/world/british-pm-confirms-parliament-suspension-until-october-14-246215">Britain's government moved</a> to extend the suspension of parliament, increasing the likelihood of a no-deal Brexit.

Britain's currency slid 1.1 per cent to $1.2157, while the euro bought 91.23 pence. Sterling later recovered to above $1.22 but remained heavily down on late Tuesday.

The pound's plunge boosted <a href="https://www.wionews.com/world/uproar-as-british-pm-johnson-cuts-parliament-time-before-brexit-246245">London's benchmark FTSE</a> 100 index, which features numerous multinationals earnings in dollars.

"The pace of sterling's drop demonstrates yet again the currency’s susceptibility to Brexit fears," said Han Tan, market analyst at FXTM trading group.

British Prime Minister Boris Johnson on Wednesday announced that the annual suspension of parliament would be extended until October 14 -&nbsp;just two weeks before the UK is set to leave the European Union.

"Such an event would curtail attempts to block a no-deal Brexit within the UK parliament," Tan added.

Anti-Brexit MPs said Johnson's move amounted to a coup and a declaration of war, branding the prime minister a dictator.

The extension "certainly caught markets off-guard and came at a time when the pound had been recouping some of its (previous Brexit-fuelled) losses", noted Craig Erlam, senior market analyst at Oanda.&nbsp;

"The FTSE, as ever, is the unintended beneficiary of the plunge in the currency, given that the vast majority of its earnings are generated outside of the UK."

By contrast, eurozone stock markets were down heavily owing to a stronger euro, and uncertainty over China-US trade talks that weighed also on Asian equities.

A poll Wednesday showed German consumer sentiment is stabilising after three months of decline and despite fears of a looming recession in Europe's biggest economy.

Pollsters GfK said their forward-looking consumer barometer stood at 9.7 points, unchanged from August when it had fallen to its April 2017 level.

In commodities trading, oil prices extended Tuesday's surge that came in response to figures showing US stockpiles dived more than 11 million barrels last week, lifting hopes for demand and offsetting worries about the impact of the trade war.

Also providing support was Iranian President Hassan Rouhani's call for the United States to lift all sanctions against before he would meet Trump, after the US leader had said he would be open to talks.

The Islamic republic's foreign minister has said the chances of a face-to-face were "unimaginable", meaning there was little chance of a thawing of tensions that would see the return of Iranian oil onto markets. 
&nbsp;

The pound slumped more than one per cent versus the dollar and euro on Wednesday as Britain's government moved to extend the suspension of parliament, increasing the likelihood of a no-deal Brexit.

The pound slumped more than one per cent versus the dollar and euro on Wednesday as Britain's government moved to extend the suspension of parliament, increasing the likelihood of a no-deal Brexit. Britain's currency slid 1.1 per cent to $1.2157, while the euro bought 91.23 pence. Sterling later recovered to above $1.22 but remained heavily down on late Tuesday. The pound's plunge boosted London's benchmark FTSE 100 index, which features numerous multinationals earnings in dollars. "The pace of sterling's drop demonstrates yet again the currency’s susceptibility to Brexit fears," said Han Tan, market analyst at FXTM trading group. British Prime Minister Boris Johnson on Wednesday announced that the annual suspension of parliament would be extended until October 14 - just two weeks before the UK is set to leave the European Union. "Such an event would curtail attempts to block a no-deal Brexit within the UK parliament," Tan added. Anti-Brexit MPs said Johnson's move amounted to a coup and a declaration of war, branding the prime minister a dictator. The extension "certainly caught markets off-guard and came at a time when the pound had been recouping some of its (previous Brexit-fuelled) losses", noted Craig Erlam, senior market analyst at Oanda. "The FTSE, as ever, is the unintended beneficiary of the plunge in the currency, given that the vast majority of its earnings are generated outside of the UK." By contrast, eurozone stock markets were down heavily owing to a stronger euro, and uncertainty over China-US trade talks that weighed also on Asian equities. A poll Wednesday showed German consumer sentiment is stabilising after three months of decline and despite fears of a looming recession in Europe's biggest economy. Pollsters GfK said their forward-looking consumer barometer stood at 9.7 points, unchanged from August when it had fallen to its April 2017 level. In commodities trading, oil prices extended Tuesday's surge that came in response to figures showing US stockpiles dived more than 11 million barrels last week, lifting hopes for demand and offsetting worries about the impact of the trade war. Also providing support was Iranian President Hassan Rouhani's call for the United States to lift all sanctions against before he would meet Trump, after the US leader had said he would be open to talks. The Islamic republic's foreign minister has said the chances of a face-to-face were "unimaginable", meaning there was little chance of a thawing of tensions that would see the return of Iranian oil onto markets.

After British PM Johnson suspends parliament, Pound slums over no-Brexit fears

WPP's former chief executive Martin Sorrell has moved to reassure investors in the advertising giant that the firm he has set up since his abrupt exit will not compete directly with it.

Sorrell has spoken to at least two WPP shareholders in recent weeks in calls instigated by the investors and facilitated by WPP, a spokesman for the FTSE-100 company told Reuters.

In one of the calls the 73-year-old former CEO told Alastair Gunn, a fund manager at Jupiter Asset Management which is WPP's 15th biggest shareholder, that the new venture he launched just six weeks after leaving the group in April will not undermine WPP.

Sorrell, who did not have a non-compete clause in his contract and remains WPP's eighth biggest shareholder, indicated that he would not seek to hurt the company he founded 33 years ago, Gunn told Reuters.

"He's got a lot of money still invested in WPP and he made it clear that it would be very illogical of him to be out to try and undermine his single largest investment," Gunn said.

"He said he wasn't going to come back and do something that would be a waterfront-type competitor to WPP."

Sorrell outlined a deal to invest 40 million pounds of his own money in a reverse takeover of London-listed Derriston Capital on Wednesday. The shell company will be renamed S4 Capital and be used to buy marketing firms.

The Derriston deal echoes the strategy that Sorrell used to transform shopping basket producer Wire and Plastic Products into WPP, the world's largest advertising company with a market value of around 15.6 billion pounds.

Sorrell said that he saw "significant opportunities for development in technology, data and content" and institutional investors have indicated they are willing to provide more than 150 million pounds to help S4 with acquisitions.

His swift return was not a surprise, Jupiter's Gunn said.

"One of the things that made him so impressive at WPP was that he wasn't like other CEOs, he was very driven and motivated and very accessible all the time. So the idea he was just going to sit on a beach somewhere was a bit of a joke," Gunn added.

A spokesman for Sorrell confirmed that he had spoken to WPP shareholders.

Sorrell, who was one of Britain's most high-profile and best-paid business executives, left WPP after the board investigated an allegation of personal misconduct.&nbsp

WPP has not given any details of the allegation and Sorrell has denied any wrongdoing.

Sorrell, who did not have a non-compete clause in his contract and remains WPP's eighth biggest shareholder, indicated that he would not seek to hurt the company he founded 33 years ago, Gunn told

WPP's former chief executive Martin Sorrell has moved to reassure investors in the advertising giant that the firm he has set up since his abrupt exit will not compete directly with it. Sorrell has spoken to at least two WPP shareholders in recent weeks in calls instigated by the investors and facilitated by WPP, a spokesman for the FTSE-100 company told Reuters. In one of the calls the 73-year-old former CEO told Alastair Gunn, a fund manager at Jupiter Asset Management which is WPP's 15th biggest shareholder, that the new venture he launched just six weeks after leaving the group in April will not undermine WPP. Sorrell, who did not have a non-compete clause in his contract and remains WPP's eighth biggest shareholder, indicated that he would not seek to hurt the company he founded 33 years ago, Gunn told Reuters. "He's got a lot of money still invested in WPP and he made it clear that it would be very illogical of him to be out to try and undermine his single largest investment," Gunn said. "He said he wasn't going to come back and do something that would be a waterfront-type competitor to WPP." Sorrell outlined a deal to invest 40 million pounds of his own money in a reverse takeover of London-listed Derriston Capital on Wednesday. The shell company will be renamed S4 Capital and be used to buy marketing firms. The Derriston deal echoes the strategy that Sorrell used to transform shopping basket producer Wire and Plastic Products into WPP, the world's largest advertising company with a market value of around 15.6 billion pounds. Sorrell said that he saw "significant opportunities for development in technology, data and content" and institutional investors have indicated they are willing to provide more than 150 million pounds to help S4 with acquisitions. His swift return was not a surprise, Jupiter's Gunn said. "One of the things that made him so impressive at WPP was that he wasn't like other CEOs, he was very driven and motivated and very accessible all the time. So the idea he was just going to sit on a beach somewhere was a bit of a joke," Gunn added. A spokesman for Sorrell confirmed that he had spoken to WPP shareholders. Sorrell, who was one of Britain's most high-profile and best-paid business executives, left WPP after the board investigated an allegation of personal misconduct. WPP has not given any details of the allegation and Sorrell has denied any wrongdoing.

Martin Sorrell tells investor his new venture is not targeting WPP

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After British PM Johnson suspends parliament, Pound slums over no-Brexit fears

Martin Sorrell tells investor his new venture is not targeting WPP