The pound recovered Tuesday against the dollar and euro as Prime Minister Boris Johnson looked set to secure his wish for a general election before Christmas aimed at finally forcing through Brexit.

Traders were looking ahead also to a meeting of the Federal Reserve that was expected to end with the US central bank announcing an interest-rate cut on Wednesday.

Around 1115 GMT, sterling clawed back losses to trade at $1.2862, virtually unchanged compared with its level late Monday in New York.

The euro meanwhile reversed direction to stand 0.2-per cent lower at 86.14 pence.

"Bulls have finally escaped the selling pressure and pushed sterling higher on the back of the news that Labour is finally backing the elections," commented Naeem Aslam, chief market analyst at ThinkMarkets.&nbsp;

"The spike in sterling is decent but we are not expecting any significant moves."

Britain appeared headed for a December election after the main opposition Labour party said it would support Johnson's desire for a pre-Christmas poll.

Labour leader Jeremy Corbyn said the decision by European Union leaders on Monday to again delay Brexit meant that "for the next three months, our condition of taking 'no-deal' off the table has now been met".

David Cheetham, chief market analyst at XTB trading group, said "the pound will likely stay fairly well supported unless a no-deal outcome becomes more than marginally possible once more".

He added: "Elections are often seen as bringing heightened uncertainty and therefore negative in the near-term for affected markets, but in this case there is a hope that it will bring an end to the present quandary we find ourselves in."&nbsp;

In equities trade, London's benchmark FTSE 100 index was down 0.7 per cent in late morning deals, extending earlier losses as the stronger pound weighed on share price for multinationals that have substantial earnings in dollars.

In the eurozone, Frankfurt's DAX 30 lost 0.2 per cent and the Paris CAC 40 shed 0.1 per cent.&nbsp;

Elsewhere Tuesday, Asian stock markets diverged following another record-high close for Wall Street on Monday amid a renewed sense of hope over China-US trade talks.

Expectations for a US rate cut and some strong company earnings were also providing a much-needed lift to confidence after a rollercoaster year on global trading floors.

Oil prices extended Monday's big losses that had been sparked by reports of another pick-up in US stockpiles that indicated weak demand growth.

Key figures around 1115 GMT

Pound/dollar: DOWN slightly at $1.2862 from $1.2863 at 2100 GMT

Euro/pound: DOWN at 86.14 pence from 86.29 pence&nbsp;

Euro/dollar: DOWN at $1.1081 from $1.1100

Dollar/yen: DOWN at 108.90 yen from 108.95 yen

London - FTSE 100: DOWN 0.7 per cent at 7,278.43 points

Frankfurt - DAX 30: DOWN 0.2 per cent at 12,921

Paris - CAC 40: DOWN 0.1 per cent at 5,726.50

EURO STOXX 50: DOWN 0.2 per cent at 3,618.32

Tokyo - Nikkei 225: UP 0.5 per cent at 22,974.13 (close)

Hong Kong - Hang Seng: DOWN 0.4 per cent at 26,786.76 (close)

Shanghai - Composite: DOWN 0.9 per cent at 2,954.18 (close)

New York - Dow: UP 0.5 per cent at 27.090.72 (close)

Brent North Sea crude: DOWN 1.1 per cent at $60.87 per barrel

West Texas Intermediate: DOWN 1.2 per cent at $55.14 per barrel

The pound recovered Tuesday against the dollar and euro as Prime Minister Boris Johnson looked set to secure his wish for a general election before Christmas aimed at finally forcing through Brexit.

The pound recovered Tuesday against the dollar and euro as Prime Minister Boris Johnson looked set to secure his wish for a general election before Christmas aimed at finally forcing through Brexit. Traders were looking ahead also to a meeting of the Federal Reserve that was expected to end with the US central bank announcing an interest-rate cut on Wednesday. Around 1115 GMT, sterling clawed back losses to trade at $1.2862, virtually unchanged compared with its level late Monday in New York. The euro meanwhile reversed direction to stand 0.2-per cent lower at 86.14 pence. "Bulls have finally escaped the selling pressure and pushed sterling higher on the back of the news that Labour is finally backing the elections," commented Naeem Aslam, chief market analyst at ThinkMarkets. "The spike in sterling is decent but we are not expecting any significant moves." Britain appeared headed for a December election after the main opposition Labour party said it would support Johnson's desire for a pre-Christmas poll. Labour leader Jeremy Corbyn said the decision by European Union leaders on Monday to again delay Brexit meant that "for the next three months, our condition of taking 'no-deal' off the table has now been met". David Cheetham, chief market analyst at XTB trading group, said "the pound will likely stay fairly well supported unless a no-deal outcome becomes more than marginally possible once more". He added: "Elections are often seen as bringing heightened uncertainty and therefore negative in the near-term for affected markets, but in this case there is a hope that it will bring an end to the present quandary we find ourselves in." In equities trade, London's benchmark FTSE 100 index was down 0.7 per cent in late morning deals, extending earlier losses as the stronger pound weighed on share price for multinationals that have substantial earnings in dollars. In the eurozone, Frankfurt's DAX 30 lost 0.2 per cent and the Paris CAC 40 shed 0.1 per cent. Elsewhere Tuesday, Asian stock markets diverged following another record-high close for Wall Street on Monday amid a renewed sense of hope over China-US trade talks. Expectations for a US rate cut and some strong company earnings were also providing a much-needed lift to confidence after a rollercoaster year on global trading floors. Oil prices extended Monday's big losses that had been sparked by reports of another pick-up in US stockpiles that indicated weak demand growth. Key figures around 1115 GMT Pound/dollar: DOWN slightly at $1.2862 from $1.2863 at 2100 GMT Euro/pound: DOWN at 86.14 pence from 86.29 pence Euro/dollar: DOWN at $1.1081 from $1.1100 Dollar/yen: DOWN at 108.90 yen from 108.95 yen London - FTSE 100: DOWN 0.7 per cent at 7,278.43 points Frankfurt - DAX 30: DOWN 0.2 per cent at 12,921 Paris - CAC 40: DOWN 0.1 per cent at 5,726.50 EURO STOXX 50: DOWN 0.2 per cent at 3,618.32 Tokyo - Nikkei 225: UP 0.5 per cent at 22,974.13 (close) Hong Kong - Hang Seng: DOWN 0.4 per cent at 26,786.76 (close) Shanghai - Composite: DOWN 0.9 per cent at 2,954.18 (close) New York - Dow: UP 0.5 per cent at 27.090.72 (close) Brent North Sea crude: DOWN 1.1 per cent at $60.87 per barrel West Texas Intermediate: DOWN 1.2 per cent at $55.14 per barrel

Pound recovers with UK set for general election

The pound extended losses Wednesday after Boris Johnson's failure to push through his Brexit deal fuelled fresh uncertainty, while Asian markets also ticked lower as investors took a step back after recent gains.

With everything quiet on the China-US trade talks, attention was on Westminster where Britain's prime minister finally got MPs to agree to his EU divorce pact, but minutes later lost a vote on a truncated debate that would have passed it in just three days.

The news means Johnson is unlikely to fulfil his pledge of leaving the European Union the October 31 deadline and raises the possibility of his calling a general election before the end of the year.

EU chiefs are now expected to recommend another extension to the withdrawal date, which analysts said the PM would blame on opposition lawmakers in the event of a national poll.

The prospect of another delay hit sterling, which fell as low as $1.2843 on Wednesday. The unit had earlier this week broken $1.30 for the first time in five months on hopes of averting a painful no-deal divorce. It was also lower against the euro.

"Getting a revised withdrawal agreement to this point and winning with a convincing margin... is an extraordinary achievement," said Stephen Innes, senior market analyst at AxiTrader.

"But with parliament rejecting PM Johnson's truncated timetable in favour of more time to debate the bill, it now means members will give the statute the fine-tooth comb treatment, opening it to more criticism suggesting it could be knocked down later."

- 'Endless' permutations - 
However, one observer pointed out that remarks from Johnson that he would drag Britain out of the EU with the deal come what may be significant.

"This could be an important, indeed key, shift in the government's position as it may indicate a willingness to extend and then seek to get the bill through Parliament," said Neil Wilson at Markets.com.

"My initial thoughts are that the government will let the EU offer the extension to get the bill through, and (Johnson) can square the circle later with amendments etcetera."

But he added that "the permutations remain nearly endless... Uncertainty prevails, but parliament has backed a deal and that feels like a key moment".

The news weighed on US markets, with all three main indexes ending down, and the losses seeped through to Asia.

Tokyo went into the break slightly lower as investors returned from a one-day holiday, while Shanghai slipped 0.1 per cent and Sydney shed 0.2 per cent.

Hong Kong was down 0.5 per cent, with traders keeping tabs on reactions to a Financial Times report saying China was drawing up a plan to remove the city's beleaguered chief executive after nearly five months of pro-democracy unrest.

Singapore fell 0.6 per cent and Seoul was off 0.3 per cent, while Taipei, Manila and Jakarta were also well into the red.

Wellington tumbled two per cent, with major construction firm Fletcher Building hit by a massive fire at a&nbsp;$450 million convention centre it is building in the middle of Auckland.

Oil prices dipped after data indicated US stockpiles increased again last week, reinforcing worries about demand as the world economy slows.&nbsp;

The pound extended losses Wednesday after Boris Johnson's failure to push through his Brexit deal fuelled fresh uncertainty, while Asian markets also ticked lower as investors took a step back after recent gains.

The pound extended losses Wednesday after Boris Johnson's failure to push through his Brexit deal fuelled fresh uncertainty, while Asian markets also ticked lower as investors took a step back after recent gains. With everything quiet on the China-US trade talks, attention was on Westminster where Britain's prime minister finally got MPs to agree to his EU divorce pact, but minutes later lost a vote on a truncated debate that would have passed it in just three days. The news means Johnson is unlikely to fulfil his pledge of leaving the European Union the October 31 deadline and raises the possibility of his calling a general election before the end of the year. EU chiefs are now expected to recommend another extension to the withdrawal date, which analysts said the PM would blame on opposition lawmakers in the event of a national poll. The prospect of another delay hit sterling, which fell as low as $1.2843 on Wednesday. The unit had earlier this week broken $1.30 for the first time in five months on hopes of averting a painful no-deal divorce. It was also lower against the euro. "Getting a revised withdrawal agreement to this point and winning with a convincing margin... is an extraordinary achievement," said Stephen Innes, senior market analyst at AxiTrader. "But with parliament rejecting PM Johnson's truncated timetable in favour of more time to debate the bill, it now means members will give the statute the fine-tooth comb treatment, opening it to more criticism suggesting it could be knocked down later." - 'Endless' permutations - However, one observer pointed out that remarks from Johnson that he would drag Britain out of the EU with the deal come what may be significant. "This could be an important, indeed key, shift in the government's position as it may indicate a willingness to extend and then seek to get the bill through Parliament," said Neil Wilson at Markets.com. "My initial thoughts are that the government will let the EU offer the extension to get the bill through, and (Johnson) can square the circle later with amendments etcetera." But he added that "the permutations remain nearly endless... Uncertainty prevails, but parliament has backed a deal and that feels like a key moment". The news weighed on US markets, with all three main indexes ending down, and the losses seeped through to Asia. Tokyo went into the break slightly lower as investors returned from a one-day holiday, while Shanghai slipped 0.1 per cent and Sydney shed 0.2 per cent. Hong Kong was down 0.5 per cent, with traders keeping tabs on reactions to a Financial Times report saying China was drawing up a plan to remove the city's beleaguered chief executive after nearly five months of pro-democracy unrest. Singapore fell 0.6 per cent and Seoul was off 0.3 per cent, while Taipei, Manila and Jakarta were also well into the red. Wellington tumbled two per cent, with major construction firm Fletcher Building hit by a massive fire at a $450 million convention centre it is building in the middle of Auckland. Oil prices dipped after data indicated US stockpiles increased again last week, reinforcing worries about demand as the world economy slows.

Pound, Asian markets slip as Johnson Brexit bid fails again

The British pound had a tumultuous session on Thursday as a <a href="https://www.wionews.com/world/uks-johnson-says-great-new-deal-reached-on-brexit-256464">draft Brexit deal between London and Brussels</a> sparked both hope and scepticism in a volatile forex market.

Sterling soared to within a whisker of $1.30, striking five-month peaks, when news flashed across traders' screens that the European Union had reached a draft Brexit withdrawal deal with London.

The pound held on to most of those gains for a while, absorbing a bout of profit-taking, but then the currency plunged when it dawned on investors that there was no guarantee of UK parliamentary backing for the agreement.

"After the initial relief that the UK government and EU have done a deal, markets are worried that it still does not have enough support to get through parliament on Saturday," independent economist Julian Jessop told AFP.

By 1330 GMT, the currency was pretty much back to where it started from against the dollar.

'Still chance of no deal'

It is unclear how many of Prime Minister Boris Johnson's Conservative MPs will back the deal when he brings it to lawmakers for approval Saturday, and whether the opposition will try to vote it down or attempt to force a fresh referendum.

"There is still a chance for a no-deal Brexit – although the more likely scenario would be for the Prime Minister to follow the law and request the EU for a Brexit deadline extension, which then opens up more uncertainty," said Fawad Razaqzada at Forex.com.

Northern Ireland's DUP said Thursday it was "unable to support" the draft deal. A pre-emptive DUP announcement to the same effect issued before the draft deal had already weighed on sterling, before news from Brussels gave the currency wings, if not for long.

The London stock market, which usually moves in the opposite direction from sterling, enjoyed a rise Thursday, becoming the day's star performer in otherwise lacklustre European equity trading.&nbsp;

On Wall Street, the Dow Jones index rose at the start of business.

Earlier in Asia, most markets ended in the red, with traders unable to take advantage of weak US retail data that raised the chances of another Federal Reserve interest rate cut.

Comments in the Fed's Beige Book update on the economy also pointed to a slowdown in the world's biggest economy.

Oil prices fell as data pointed to a sharp rise in US stockpiles that reinforced worries about the impact on demand from the China-US trade war and the global economic slowdown.

Key figures around 1330 GMT

Pound/dollar: DOWN at $1.2831 from $1.2832 at 2100 GMT

Euro/pound: UP at 86.68 pence from 86.28 pence

Euro/dollar: UP at $1.1124 from $1.1033&nbsp;

Dollar/yen: DOWN at 108.62 yen from 108.76 yen

London - FTSE 100: UP 0.8 percent at 7,223.88 points

Paris - CAC 40: UP 0.1 percent at 5,699.52

Frankfurt - DAX 30: UP 0.6 percent at 12,740.91

EURO STOXX 50: UP 0.2 percent at 3,606.10

New York - Dow: UP 0.3 percent at 27,078.39

Tokyo - Nikkei 225: DOWN 0.1 percent at 22,451.86 (close)

Hong Kong - Hang Seng: UP 0.7 percent at 26,848.49 (close)

Shanghai - Composite: DOWN 0.1 percent at 2,977.33 (close)

Brent North Sea crude: DOWN 0.7 percent at $59.03 per barrel

West Texas Intermediate: DOWN 0.8 percent at $52.93

The British pound had a tumultuous session on Thursday as a draft Brexit deal between London and Brussels sparked both hope and scepticism in a volatile forex market.

The British pound had a tumultuous session on Thursday as a draft Brexit deal between London and Brussels sparked both hope and scepticism in a volatile forex market. Sterling soared to within a whisker of $1.30, striking five-month peaks, when news flashed across traders' screens that the European Union had reached a draft Brexit withdrawal deal with London. The pound held on to most of those gains for a while, absorbing a bout of profit-taking, but then the currency plunged when it dawned on investors that there was no guarantee of UK parliamentary backing for the agreement. "After the initial relief that the UK government and EU have done a deal, markets are worried that it still does not have enough support to get through parliament on Saturday," independent economist Julian Jessop told AFP. By 1330 GMT, the currency was pretty much back to where it started from against the dollar. 'Still chance of no deal' It is unclear how many of Prime Minister Boris Johnson's Conservative MPs will back the deal when he brings it to lawmakers for approval Saturday, and whether the opposition will try to vote it down or attempt to force a fresh referendum. "There is still a chance for a no-deal Brexit – although the more likely scenario would be for the Prime Minister to follow the law and request the EU for a Brexit deadline extension, which then opens up more uncertainty," said Fawad Razaqzada at Forex.com. Northern Ireland's DUP said Thursday it was "unable to support" the draft deal. A pre-emptive DUP announcement to the same effect issued before the draft deal had already weighed on sterling, before news from Brussels gave the currency wings, if not for long. The London stock market, which usually moves in the opposite direction from sterling, enjoyed a rise Thursday, becoming the day's star performer in otherwise lacklustre European equity trading. On Wall Street, the Dow Jones index rose at the start of business. Earlier in Asia, most markets ended in the red, with traders unable to take advantage of weak US retail data that raised the chances of another Federal Reserve interest rate cut. Comments in the Fed's Beige Book update on the economy also pointed to a slowdown in the world's biggest economy. Oil prices fell as data pointed to a sharp rise in US stockpiles that reinforced worries about the impact on demand from the China-US trade war and the global economic slowdown. Key figures around 1330 GMT Pound/dollar: DOWN at $1.2831 from $1.2832 at 2100 GMT Euro/pound: UP at 86.68 pence from 86.28 pence Euro/dollar: UP at $1.1124 from $1.1033 Dollar/yen: DOWN at 108.62 yen from 108.76 yen London - FTSE 100: UP 0.8 percent at 7,223.88 points Paris - CAC 40: UP 0.1 percent at 5,699.52 Frankfurt - DAX 30: UP 0.6 percent at 12,740.91 EURO STOXX 50: UP 0.2 percent at 3,606.10 New York - Dow: UP 0.3 percent at 27,078.39 Tokyo - Nikkei 225: DOWN 0.1 percent at 22,451.86 (close) Hong Kong - Hang Seng: UP 0.7 percent at 26,848.49 (close) Shanghai - Composite: DOWN 0.1 percent at 2,977.33 (close) Brent North Sea crude: DOWN 0.7 percent at $59.03 per barrel West Texas Intermediate: DOWN 0.8 percent at $52.93

Pound goes on rollercoaster ride after Brexit draft deal

Sterling came off five-month highs and stocks traded sideways on Wednesday as the European Union and Britain sought to avert a disorderly Brexit before an EU summit on Thursday.

Hopes of a breakthrough lifted markets on Tuesday, but investors turned more cautious after looking for a deal during the night that never came.

Conflicting reports about the ongoing talks triggered a series of sharp moves on the pound. Reports that Germany might use emergency measures to counter any market panic from a hard Brexit, such as banning bets on falling share prices, also weighed on morale.

"Most of the good news that could have been anticipated has been priced in, and now there's caution it seems on whether we get a deal today or not," said Kallum Pickering, senior economist at Berenberg.

Sterling was down by 0.4 per cent&nbsp;against the dollar with investors trading volatility levels not seen since the 2016 June Brexit referendum.

The pound had strengthened by close to 5 per cent&nbsp;over the past week as investors rushed to reprice the prospect of a last-minute Brexit deal before the October 31 deadline.

Eurozone government bonds were also volatile on Wednesday as investors watched the eleventh-hour talks.

German 10-year government bond yields were last flat at -0.42 per cent, after reaching an 11-week high of -0.397 per cent&nbsp;as Bunds extended a sell-off that began on Tuesday.

British government 10-year bond yields were down 2.7 basis points at 0.67 per cent, unaffected by data showing inflation in September reached 1.7 per cent&nbsp;year-on-year, below market expectations.

The pan-European STOXX 600&nbsp;retreated 0.1 per cent, but Britain's domestically focused midcaps, a gauge of Brexit anxiety, fell 0.8 per cent. Ireland's ISEQ, another vulnerable index, lost 0.6 per cent.

Earlier, shares rose in Asia. MSCI's broadest index of Asia-Pacific shares outside Japan&nbsp;gained 0.5 per cent. MSCI's gauge of stocks across the globe&nbsp;was flat.

"Even though we are most optimistic that a deal does happen, we don't think the most likely outcome is that it happens by October 31, so you would be looking at some form of extension and potentially elections," said, Andrew Sheets, chief cross-asset strategist at Morgan Stanley.

Third-quarter earnings are expected to show an overall decline in earnings, which could also weigh on morale, Sheets said. Morgan Stanley had a below-consensus view on how companies would fare this quarter, he said.

Europe's companies are struggling with uncertainties ranging from Brexit and the US-China trade war to Germany's manufacturing recession.

Companies listed on the STOXX 600&nbsp;index are now expected to report a decline in third-quarter earnings of as much as 3.7 per cent, worse than the 3 per cent&nbsp;expected a week ago, according to I/B/E/S data from Refinitiv.

Bloomberg reported, citing sources, that China will struggle to buy $50 billion of US&nbsp;farm goods annually unless it removes retaliatory tariffs on American products, which would require reciprocal action by US&nbsp;President Donald Trump.

The US-China trade war will cut 2019 global growth to its slowest pace since the 2008-2009 financial crisis, the International Monetary Fund warned on Tuesday.

Global gross domestic product is now expected grow 3 per cent&nbsp;in 2019, the IMF said its latest World Economic Outlook projections, down from 3.2 per cent&nbsp;in a July forecast, largely because of global trade friction.

US&nbsp;stocks, which typically track the ups and downs of the trade war, were set to open in the red. S&amp;P 500 futures&nbsp;and Nasdaq futures&nbsp;were both down 0.3 per cent.

In commodities, Brent crude&nbsp;shed about 0.1 cent to $58.66 a barrel. US&nbsp;crude&nbsp;rose 10 cents to $52.91 after falling the day before over fears the trade war would keep squeezing the global economy.

In emerging markets, Turkey's Halkbank saw its shares and bonds plunge after US&nbsp;prosecutors charged the state-owned lender with taking part in a multibillion-dollar scheme to evade US&nbsp;sanctions on Iran. A day earlier, Washington had imposed sanctions on Turkish officials, raised tariffs and halted trade talks after Turkey invaded northeastern Syria in a campaign again Kurdish fighters. Before Turkish markets opened, authorities banned short selling on seven large Turkish bank stocks, including Halkbank. Selling shares in the banks only to buy them later in the session was also banned, authorities said.

Sterling came off five-month highs and stocks traded sideways on Wednesday as the European Union and Britain sought to avert a disorderly Brexit before an EU summit on Thursday.

Sterling came off five-month highs and stocks traded sideways on Wednesday as the European Union and Britain sought to avert a disorderly Brexit before an EU summit on Thursday. Hopes of a breakthrough lifted markets on Tuesday, but investors turned more cautious after looking for a deal during the night that never came. Conflicting reports about the ongoing talks triggered a series of sharp moves on the pound. Reports that Germany might use emergency measures to counter any market panic from a hard Brexit, such as banning bets on falling share prices, also weighed on morale. "Most of the good news that could have been anticipated has been priced in, and now there's caution it seems on whether we get a deal today or not," said Kallum Pickering, senior economist at Berenberg. Sterling was down by 0.4 per cent against the dollar with investors trading volatility levels not seen since the 2016 June Brexit referendum. The pound had strengthened by close to 5 per cent over the past week as investors rushed to reprice the prospect of a last-minute Brexit deal before the October 31 deadline. Eurozone government bonds were also volatile on Wednesday as investors watched the eleventh-hour talks. German 10-year government bond yields were last flat at -0.42 per cent, after reaching an 11-week high of -0.397 per cent as Bunds extended a sell-off that began on Tuesday. British government 10-year bond yields were down 2.7 basis points at 0.67 per cent, unaffected by data showing inflation in September reached 1.7 per cent year-on-year, below market expectations. The pan-European STOXX 600 retreated 0.1 per cent, but Britain's domestically focused midcaps, a gauge of Brexit anxiety, fell 0.8 per cent. Ireland's ISEQ, another vulnerable index, lost 0.6 per cent. Earlier, shares rose in Asia. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.5 per cent. MSCI's gauge of stocks across the globe was flat. "Even though we are most optimistic that a deal does happen, we don't think the most likely outcome is that it happens by October 31, so you would be looking at some form of extension and potentially elections," said, Andrew Sheets, chief cross-asset strategist at Morgan Stanley. Third-quarter earnings are expected to show an overall decline in earnings, which could also weigh on morale, Sheets said. Morgan Stanley had a below-consensus view on how companies would fare this quarter, he said. Europe's companies are struggling with uncertainties ranging from Brexit and the US-China trade war to Germany's manufacturing recession. Companies listed on the STOXX 600 index are now expected to report a decline in third-quarter earnings of as much as 3.7 per cent, worse than the 3 per cent expected a week ago, according to I/B/E/S data from Refinitiv. Bloomberg reported, citing sources, that China will struggle to buy $50 billion of US farm goods annually unless it removes retaliatory tariffs on American products, which would require reciprocal action by US President Donald Trump. The US-China trade war will cut 2019 global growth to its slowest pace since the 2008-2009 financial crisis, the International Monetary Fund warned on Tuesday. Global gross domestic product is now expected grow 3 per cent in 2019, the IMF said its latest World Economic Outlook projections, down from 3.2 per cent in a July forecast, largely because of global trade friction. US stocks, which typically track the ups and downs of the trade war, were set to open in the red. S&P 500 futures and Nasdaq futures were both down 0.3 per cent. In commodities, Brent crude shed about 0.1 cent to $58.66 a barrel. US crude rose 10 cents to $52.91 after falling the day before over fears the trade war would keep squeezing the global economy. In emerging markets, Turkey's Halkbank saw its shares and bonds plunge after US prosecutors charged the state-owned lender with taking part in a multibillion-dollar scheme to evade US sanctions on Iran. A day earlier, Washington had imposed sanctions on Turkish officials, raised tariffs and halted trade talks after Turkey invaded northeastern Syria in a campaign again Kurdish fighters. Before Turkish markets opened, authorities banned short selling on seven large Turkish bank stocks, including Halkbank. Selling shares in the banks only to buy them later in the session was also banned, authorities said.

Sterling falters as Brexit approaches its endgame

The British pound topped $1.23 on Thursday, hitting a one-month peak on fading prospects of a "no-deal" Brexit after a series of parliamentary votes tore up Prime Minister Boris Johnson's hardline stance.

By about 1020 GMT, sterling had surged to $1.2347, the highest level since July 29 having plunged to multi-year lows Tuesday.

Asian and European stock markets mainly rose Thursday, but London was hit by the strong pound that hurts multinationals whose earnings are mostly in foreign currencies.

Parliament is currently rushing through legislation designed to keep Johnson from breaking Britain off from the European Union without a trade deal.

They appeared on course to do so by Monday a victory that would be accomplished just ahead of the five-week shutdown of parliament Johnson controversially ordered last month.

'Fresh legs on the pound'

"News that the bill to stop a no-deal Brexit should complete its passage through the House of Lords by Friday afternoon has put fresh legs on the pound's rally," City Index analyst Fiona Cincotta told AFP.

"After a volatile start, sterling has now pushed over $1.23 as Britain moves further back from the brink of a no-deal Brexit.

"Whilst there are clearly some hurdles still to be overcome, pound traders are feeling significantly more optimistic about the UK's eventual exit from the EU," she added.

The embattled British currency had tanked on Tuesday to $1.1959 which was the pound's weakest level since 1985 except for a 2016 "flash crash".

Yet it has since rallied on rising hopes that Britain will not quit the European Union without a trade deal on October 31.

"The pound has been behaving as a tidy barometer of the odds of a no-deal Brexit," Rabobank analyst Jane Foley told AFP.

"Just as fears of a no-deal Brexit pushed the pound below $1.20 earlier this week, expectations that MPs will succeed in delaying Brexit beyond October 31 have resulting in a relief rally back to $1.23.

"The pound is clearly not out of the woods with political uncertainty still at very elevated levels&nbsp;but the risk of a disorderly Brexit next month at least looks set to be pushed off the table," Foley added.

The bill would force Johnson to seek a three-month Brexit extension until January 31 should no deal emerge from an EU summit in Brussels on October 17-18.

Stocks mainly climb

Elsewhere, equities mostly rose, building on the previous day's advance as investors were cheered by a number of positive developments on trade, Hong Kong and Europe.

Markets were already on an upward trajectory after the leader of Hong Kong on Wednesday withdrew a controversial extradition bill that had sparked months of sometimes violent protests in the financial hub.

But the good news kept coming as the day wore on, with news that Italy had formed a new moderate, pro-European government, while British MPs moved closer to preventing a no-deal Brexit.

Then on Thursday morning, China announced it would resume trade talks with the United States in Washington next month.

However, Hong Kong ended with marginal losses.&nbsp;

Having soared almost four per cent on Wednesday on the back of Chief Executive Carrie Lam's shock decision, profit-takers moved in.

Lam on Thursday urged pro-democracy protesters to end their demonstrations but her surprise decision to bow to one of their key demands was condemned as too little, too late.

The British pound topped $1.23 on Thursday, hitting a one-month peak on fading prospects of a "no-deal" Brexit after a series of parliamentary votes tore up Prime Minister Boris Johnson's hardline stance.

The British pound topped $1.23 on Thursday, hitting a one-month peak on fading prospects of a "no-deal" Brexit after a series of parliamentary votes tore up Prime Minister Boris Johnson's hardline stance. By about 1020 GMT, sterling had surged to $1.2347, the highest level since July 29 having plunged to multi-year lows Tuesday. Asian and European stock markets mainly rose Thursday, but London was hit by the strong pound that hurts multinationals whose earnings are mostly in foreign currencies. Parliament is currently rushing through legislation designed to keep Johnson from breaking Britain off from the European Union without a trade deal. They appeared on course to do so by Monday a victory that would be accomplished just ahead of the five-week shutdown of parliament Johnson controversially ordered last month. 'Fresh legs on the pound' "News that the bill to stop a no-deal Brexit should complete its passage through the House of Lords by Friday afternoon has put fresh legs on the pound's rally," City Index analyst Fiona Cincotta told AFP. "After a volatile start, sterling has now pushed over $1.23 as Britain moves further back from the brink of a no-deal Brexit. "Whilst there are clearly some hurdles still to be overcome, pound traders are feeling significantly more optimistic about the UK's eventual exit from the EU," she added. The embattled British currency had tanked on Tuesday to $1.1959 which was the pound's weakest level since 1985 except for a 2016 "flash crash". Yet it has since rallied on rising hopes that Britain will not quit the European Union without a trade deal on October 31. "The pound has been behaving as a tidy barometer of the odds of a no-deal Brexit," Rabobank analyst Jane Foley told AFP. "Just as fears of a no-deal Brexit pushed the pound below $1.20 earlier this week, expectations that MPs will succeed in delaying Brexit beyond October 31 have resulting in a relief rally back to $1.23. "The pound is clearly not out of the woods with political uncertainty still at very elevated levels but the risk of a disorderly Brexit next month at least looks set to be pushed off the table," Foley added. The bill would force Johnson to seek a three-month Brexit extension until January 31 should no deal emerge from an EU summit in Brussels on October 17-18. Stocks mainly climb Elsewhere, equities mostly rose, building on the previous day's advance as investors were cheered by a number of positive developments on trade, Hong Kong and Europe. Markets were already on an upward trajectory after the leader of Hong Kong on Wednesday withdrew a controversial extradition bill that had sparked months of sometimes violent protests in the financial hub. But the good news kept coming as the day wore on, with news that Italy had formed a new moderate, pro-European government, while British MPs moved closer to preventing a no-deal Brexit. Then on Thursday morning, China announced it would resume trade talks with the United States in Washington next month. However, Hong Kong ended with marginal losses. Having soared almost four per cent on Wednesday on the back of Chief Executive Carrie Lam's shock decision, profit-takers moved in. Lam on Thursday urged pro-democracy protesters to end their demonstrations but her surprise decision to bow to one of their key demands was condemned as too little, too late.

Pound tops $1.23 on fading no-deal Brexit prospect

Sterling hit a two-year low on Monday as Prime Minister Boris Johnson's government said it now assumed there would be a <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/no-deal-brexit-had-become-a-serious-possibility-cbi-chief-carolyn-fairbairn-239206&amp;sa=U&amp;ved=2ahUKEwi9xcXFitrjAhVO7mEKHQlcAkYQFjABegQIDxAC&amp;usg=AOvVaw07JQut3Vw9Gy2-8QTnDxFn">no-deal Brexit</a> because a "stubborn" European Union was refusing to renegotiate their divorce.

Many investors say a no-deal Brexit would send shock waves through the world economy, tip Britain's economy into a recession, roil financial markets and weaken London's position as the pre-eminent international financial centre.

The pound, which was trading at $1.50 on the day of the 2016 referendum, dropped 0.4% to $1.2325, the lowest level since March 2017.

Johnson bets that the threat of a no-deal Brexit will persuade the EU's biggest powers - Germany and France - to agree to revise the divorce deal that Theresa May agreed to last November but failed three times to push through the British parliament.

The 27 other EU members, though, say publicly and privately that the divorce settlement - including the Irish border backstop - is not up for barter. Many EU diplomats say an election is highly likely.

"There must be some change from the EU and if the EU is not willing to move at all we must be ready to give the country some finality," <a href="https://www.wionews.com/world/iran-should-respect-international-laws-britains-foreign-minister-239218">Foreign Secretary Dominic Raab</a> said, adding that London was "turbo-charging" no-deal preparations.

Raab said the United Kingdom wanted a deal but repeatedly cast the bloc as "stubborn". Asked if he was threatening the EU - whose $15.9 trillion economy is nearly six times that of the United Kingdom's - Raab said: "I am not doing any threatening."

Hedge funds increased their net short sterling positions to the highest level in nearly a year. And in a sign investors are scrambling for protection against currency swings around the time of the October 31 exit, three-month implied volatility surged to a four-month high.

Johnson has told EU leaders he will sit down for Brexit talks when they indicate they are ready to shift on the divorce deal, otherwise Britain will prepare for leaving without a deal, his spokeswoman said on Monday.

Our&nbsp;Union

Differences over Brexit have strained the bonds that tie the United Kingdom. While the country voted 52-48 to leave in 2016, Scotland and Northern Ireland voted to stay in the EU while Wales and England vote to leave.

The question of the unification of Ireland and British-ruled Northern Ireland will inevitably arise if Britain leaves the European Union without a divorce deal on October 31, Irish Prime Minister Leo Varadkar said.

Varadkar also suggested that a so-called hard Brexit could undermine Scotland's place in the United Kingdom.

Johnson makes his first visit to Scotland as prime minister on Monday, as his Conservative Party's leader there said she would refuse to support a no-deal Brexit.

"Our Union is the most successful political and economic union in history. We are a global brand and together we are safer, stronger and more prosperous," Johnson said in a statement ahead of the visit.

"So as we prepare for our bright future after Brexit, it's vital we renew the ties that bind our United Kingdom."

Johnson's promise to deliver Brexit, with or without a deal, has put him at odds with some in his party who oppose a "no-deal" exit - including its Scottish leader Ruth Davidson.

Gordon Brown, a Scot and a former prime minister, said this month that Johnson could be the United Kingdom's last prime minister as he could be on a collision course with Scottish nationalists.

Last week, Scotland's nationalist leader Nicola Sturgeon wrote to Johnson telling him his Brexit plans would hurt the Scottish economy and that she would continue preparations for a second independence referendum.

Sterling hit a two-year low on Monday as Prime Minister Boris Johnson's government said it now assumed there would be a no-deal Brexit because a "stubborn" European Union was refusing to renegotiate their divorce.

Sterling hit a two-year low on Monday as Prime Minister Boris Johnson's government said it now assumed there would be a no-deal Brexit because a "stubborn" European Union was refusing to renegotiate their divorce. Many investors say a no-deal Brexit would send shock waves through the world economy, tip Britain's economy into a recession, roil financial markets and weaken London's position as the pre-eminent international financial centre. The pound, which was trading at $1.50 on the day of the 2016 referendum, dropped 0.4% to $1.2325, the lowest level since March 2017. Johnson bets that the threat of a no-deal Brexit will persuade the EU's biggest powers - Germany and France - to agree to revise the divorce deal that Theresa May agreed to last November but failed three times to push through the British parliament. The 27 other EU members, though, say publicly and privately that the divorce settlement - including the Irish border backstop - is not up for barter. Many EU diplomats say an election is highly likely. "There must be some change from the EU and if the EU is not willing to move at all we must be ready to give the country some finality," Foreign Secretary Dominic Raab said, adding that London was "turbo-charging" no-deal preparations. Raab said the United Kingdom wanted a deal but repeatedly cast the bloc as "stubborn". Asked if he was threatening the EU - whose $15.9 trillion economy is nearly six times that of the United Kingdom's - Raab said: "I am not doing any threatening." Hedge funds increased their net short sterling positions to the highest level in nearly a year. And in a sign investors are scrambling for protection against currency swings around the time of the October 31 exit, three-month implied volatility surged to a four-month high. Johnson has told EU leaders he will sit down for Brexit talks when they indicate they are ready to shift on the divorce deal, otherwise Britain will prepare for leaving without a deal, his spokeswoman said on Monday. Our Union Differences over Brexit have strained the bonds that tie the United Kingdom. While the country voted 52-48 to leave in 2016, Scotland and Northern Ireland voted to stay in the EU while Wales and England vote to leave. The question of the unification of Ireland and British-ruled Northern Ireland will inevitably arise if Britain leaves the European Union without a divorce deal on October 31, Irish Prime Minister Leo Varadkar said. Varadkar also suggested that a so-called hard Brexit could undermine Scotland's place in the United Kingdom. Johnson makes his first visit to Scotland as prime minister on Monday, as his Conservative Party's leader there said she would refuse to support a no-deal Brexit. "Our Union is the most successful political and economic union in history. We are a global brand and together we are safer, stronger and more prosperous," Johnson said in a statement ahead of the visit. "So as we prepare for our bright future after Brexit, it's vital we renew the ties that bind our United Kingdom." Johnson's promise to deliver Brexit, with or without a deal, has put him at odds with some in his party who oppose a "no-deal" exit - including its Scottish leader Ruth Davidson. Gordon Brown, a Scot and a former prime minister, said this month that Johnson could be the United Kingdom's last prime minister as he could be on a collision course with Scottish nationalists. Last week, Scotland's nationalist leader Nicola Sturgeon wrote to Johnson telling him his Brexit plans would hurt the Scottish economy and that she would continue preparations for a second independence referendum.

UK plays hardball with 'stubborn' European Union, pound tumbles to a 28-month low on Brexit woes

The pound held its gains Thursday after Britain and its EU partners agreed to<a href="https://www.wionews.com/world/european-union-gives-britain-six-month-delay-to-brexit-date-209399"> once again extend the deadline for Brexit</a>, days before the cut-off for avoiding an economically calamitous no-deal divorce.

After hours of late-night talks <a href="https://www.wionews.com/world/uk-pm-may-says-view-on-second-brexit-referendum-has-not-changed-209308">Prime Minister Theresa May</a> was given until the end of October to pass her deal for leaving the bloc through parliament, having failed three times already.

The extension allows for an earlier exit if May achieves it, with a review taking place on June 21.

News of the delay allowed traders to breathe a sigh of relief and the pound rose slightly soon after the deal but observers noted the reprieve was only brief with the agreement merely kicking the can down the road. In early trade London's FTSE index was down 0.5 percent.

"The problem for traders and investors is that the extension... does not bring us any closer to a resolution," said Neil Wilson, chief market analyst at Markets.com.

"The cliff-edge has simply been pushed back. We are in a period of peak uncertainty for UK politics and that won't help investors pile back into UK assets."

And there remains much uncertainty, with the prime minister under intense pressure from hardline Brexit supporters in her Conservative party not to compromise in her talks with the opposition Labour party, while the discussions are moving slowly.

Pressure on May

Michael Hewson, chief market analyst at CMC Markets UK, said: "May will now have to return to the UK and make the case to her disgruntled Brexiter MPs later today that the UK will... be in the EU for another six months.

"This is not likely to go down well, which could well increase internal party manoeuvres to replace her."

Asian equity markets mostly fell, with few catalysts to drive buying and investors still on edge over a brewing trade battle between the United States and Europe.

White House threats this week to hammer $11 billion worth of EU goods with tariffs jolted markets, which have been rallying this year on optimism that China and the US were close to ending their own battle.

The warning revived concerns about Donald Trump's protectionist agenda that has taken aim at US trading partners.

Hong Kong shed 0.9 percent and Shanghai tumbled 1.6 percent despite a jump in Chinese inflation that indicated stabilisation in the world's number two economy. Sydney lost 0.4 percent and Taipei retreated 0.6 percent. There were also losses in Jakarta, Mumbai, Manila and Bangkok.

But Tokyo reversed an early loss to end 0.1 percent up, with Wellington also up. Seoul and Singapore were barely moved.

Paris and Frankfurt were slightly lower in the morning.

Regional investors were also unmoved by the latest central bank dovishness.

The Federal Reserve released minutes of its March meeting that reinforced expectations that it will not lift interest rates this year as it keeps an eye on the US economy and brewing risks abroad.

"I think this confirms the message that we got from the March meeting," James McCann, senior economist at Aberdeen Standard Investments, told Bloomberg News.

"This is a Fed that's pretty happy to just sit on its hands for the time being and stay on hold and see how some of these cross currents play out."

The pound held its gains Thursday after Britain and its EU partners agreed to once again extend the deadline for Brexit, days before the cut-off for avoiding an economically calamitous no-deal divorce.

The pound held its gains Thursday after Britain and its EU partners agreed to once again extend the deadline for Brexit, days before the cut-off for avoiding an economically calamitous no-deal divorce. After hours of late-night talks Prime Minister Theresa May was given until the end of October to pass her deal for leaving the bloc through parliament, having failed three times already. The extension allows for an earlier exit if May achieves it, with a review taking place on June 21. News of the delay allowed traders to breathe a sigh of relief and the pound rose slightly soon after the deal but observers noted the reprieve was only brief with the agreement merely kicking the can down the road. In early trade London's FTSE index was down 0.5 percent. "The problem for traders and investors is that the extension... does not bring us any closer to a resolution," said Neil Wilson, chief market analyst at Markets.com. "The cliff-edge has simply been pushed back. We are in a period of peak uncertainty for UK politics and that won't help investors pile back into UK assets." And there remains much uncertainty, with the prime minister under intense pressure from hardline Brexit supporters in her Conservative party not to compromise in her talks with the opposition Labour party, while the discussions are moving slowly. Pressure on May Michael Hewson, chief market analyst at CMC Markets UK, said: "May will now have to return to the UK and make the case to her disgruntled Brexiter MPs later today that the UK will... be in the EU for another six months. "This is not likely to go down well, which could well increase internal party manoeuvres to replace her." Asian equity markets mostly fell, with few catalysts to drive buying and investors still on edge over a brewing trade battle between the United States and Europe. White House threats this week to hammer $11 billion worth of EU goods with tariffs jolted markets, which have been rallying this year on optimism that China and the US were close to ending their own battle. The warning revived concerns about Donald Trump's protectionist agenda that has taken aim at US trading partners. Hong Kong shed 0.9 percent and Shanghai tumbled 1.6 percent despite a jump in Chinese inflation that indicated stabilisation in the world's number two economy. Sydney lost 0.4 percent and Taipei retreated 0.6 percent. There were also losses in Jakarta, Mumbai, Manila and Bangkok. But Tokyo reversed an early loss to end 0.1 percent up, with Wellington also up. Seoul and Singapore were barely moved. Paris and Frankfurt were slightly lower in the morning. Regional investors were also unmoved by the latest central bank dovishness. The Federal Reserve released minutes of its March meeting that reinforced expectations that it will not lift interest rates this year as it keeps an eye on the US economy and brewing risks abroad. "I think this confirms the message that we got from the March meeting," James McCann, senior economist at Aberdeen Standard Investments, told Bloomberg News. "This is a Fed that's pretty happy to just sit on its hands for the time being and stay on hold and see how some of these cross currents play out."

Pound holds ground after Brexit delay, most Asian markets fall

The British pound gyrated Wednesday, initially rallying on Prime Minister Theresa May's dramatic appeal for her Brexit plan but later walking back the gains.

May pledged to step down if parliament backs her EU divorce deal, a vow that immediately boosted the British currency against the dollar and euro.

The dramatic gambit, just ahead of votes on last-minute Brexit alternatives to replace May's twice-rejected deal, pushed the British pound to close to $1.3270.&nbsp;

However, the pound was back down at $1.3189 at 2100 GMT as the prospects for May's plan still looked dicey, with the hard-line Democratic Unionist Party in Northern Ireland continuing to balk at the proposal.

British MPs also voted late Wednesday against eight alternative Brexit options aimed at overcoming the deadlock over May's unpopular divorce deal.

The latest Brexit travails came on a mixed day for global stocks, with Wall Street again wobbling on worries about slowing global growth.

Investors have been weighing how seriously to view a big drop in 10-year US Treasury bond yields in recent session, traditionally a sign of medium- and long-term economic weakness.

The yield on the 10-year US Treasury note on Wednesday fell to its lowest level since December 2017.

The Dow Jones Industrial Average dipped 0.1 percent to finish at 25,625.59, about 200 points above its session lows earlier in the day.

"Buyers showed up during the second part of the session," said Adam Sarhan of 50 Park Investment, who considers the market's jitters over bond yields overblown.

But "if the bond market is right, then the stock market can go down further," Sarhan added.

Among individual companies, Boeing rose 1.0 percent &nbsp;as it unveiled proposed changes to flight software on its 737 MAX aircraft, which have been grounded following two deadly plane crashes in five months.&nbsp;

Boeing's plan came as the head of the Federal Aviation Administration, which must approve the fixes, faced tough questioning from Congress concerning its certification of the planes.

Earlier, European equities finished little changed, while Asian equities mostly rose.

The British pound gyrated Wednesday, initially rallying on Prime Minister Theresa May's dramatic appeal for her Brexit plan but later walking back the gains. May pledged to step down if parliament backs her EU divorce deal, a vow that immediately boosted the British currency against the dollar and euro.

The British pound gyrated Wednesday, initially rallying on Prime Minister Theresa May's dramatic appeal for her Brexit plan but later walking back the gains. May pledged to step down if parliament backs her EU divorce deal, a vow that immediately boosted the British currency against the dollar and euro. The dramatic gambit, just ahead of votes on last-minute Brexit alternatives to replace May's twice-rejected deal, pushed the British pound to close to $1.3270. However, the pound was back down at $1.3189 at 2100 GMT as the prospects for May's plan still looked dicey, with the hard-line Democratic Unionist Party in Northern Ireland continuing to balk at the proposal. British MPs also voted late Wednesday against eight alternative Brexit options aimed at overcoming the deadlock over May's unpopular divorce deal. The latest Brexit travails came on a mixed day for global stocks, with Wall Street again wobbling on worries about slowing global growth. Investors have been weighing how seriously to view a big drop in 10-year US Treasury bond yields in recent session, traditionally a sign of medium- and long-term economic weakness. The yield on the 10-year US Treasury note on Wednesday fell to its lowest level since December 2017. The Dow Jones Industrial Average dipped 0.1 percent to finish at 25,625.59, about 200 points above its session lows earlier in the day. "Buyers showed up during the second part of the session," said Adam Sarhan of 50 Park Investment, who considers the market's jitters over bond yields overblown. But "if the bond market is right, then the stock market can go down further," Sarhan added. Among individual companies, Boeing rose 1.0 percent as it unveiled proposed changes to flight software on its 737 MAX aircraft, which have been grounded following two deadly plane crashes in five months. Boeing's plan came as the head of the Federal Aviation Administration, which must approve the fixes, faced tough questioning from Congress concerning its certification of the planes. Earlier, European equities finished little changed, while Asian equities mostly rose.

Sterling gyrates as British PM puts job on line

The pound retreated Thursday awaiting yet another Brexit vote, after the UK currency struck multi-month highs versus the dollar and euro thanks to British MPs ruling out a no-deal departure from the European Union.&nbsp;

London's benchmark FTSE 100 index climbed, boosted by the pound's retreat helping to lift share prices of multinationals.

"The pound has pulled away from its multi-month highs against the dollar and euro reached yesterday after the UK parliament voted against leaving the EU without a deal," noted Dean Popplewell, analyst at Oanda trading group.

Attention now turns to Thursday's vote by British MPs on whether to ask the EU to approve a Brexit delay.

It comes amid plans by Prime Minister Theresa May to ask lawmakers again to back her twice-defeated divorce deal next week.

Market focus was also on China, with Shanghai's stock market closing down 1.2 per cent after figures showed the country's factory output grew slower than forecast in the first two months of the year.

Chinese retail sales and investment were broadly in line with expectations.

The tepid readings highlighted weakness in the world's number two economy and reinforced the need for measures by the Chinese government to kickstart growth as the global economy stutters and the US trade war drags on.

Eurozone stock markets were firmer in mid-afternoon, with the CAC-40 index in Paris setting a new high for 2019.

Wall Street had closed higher Wednesday after data showed a pick-up in the US manufacturing sector, was little changed shortly after the opening bell in New York.

Oil prices rose after OPEC, citing secondary sources, said that the cartel's production fell again in February.

A production drop in crisis-ridden Venezuela accounted for more than half of the slowdown, it said in a monthly report.

The pound retreated Thursday awaiting yet another Brexit vote, after the UK currency struck multi-month highs versus the dollar and euro thanks to British MPs ruling out a no-deal departure from the European Union.

The pound retreated Thursday awaiting yet another Brexit vote, after the UK currency struck multi-month highs versus the dollar and euro thanks to British MPs ruling out a no-deal departure from the European Union. London's benchmark FTSE 100 index climbed, boosted by the pound's retreat helping to lift share prices of multinationals. "The pound has pulled away from its multi-month highs against the dollar and euro reached yesterday after the UK parliament voted against leaving the EU without a deal," noted Dean Popplewell, analyst at Oanda trading group. Attention now turns to Thursday's vote by British MPs on whether to ask the EU to approve a Brexit delay. It comes amid plans by Prime Minister Theresa May to ask lawmakers again to back her twice-defeated divorce deal next week. Market focus was also on China, with Shanghai's stock market closing down 1.2 per cent after figures showed the country's factory output grew slower than forecast in the first two months of the year. Chinese retail sales and investment were broadly in line with expectations. The tepid readings highlighted weakness in the world's number two economy and reinforced the need for measures by the Chinese government to kickstart growth as the global economy stutters and the US trade war drags on. Eurozone stock markets were firmer in mid-afternoon, with the CAC-40 index in Paris setting a new high for 2019. Wall Street had closed higher Wednesday after data showed a pick-up in the US manufacturing sector, was little changed shortly after the opening bell in New York. Oil prices rose after OPEC, citing secondary sources, said that the cartel's production fell again in February. A production drop in crisis-ridden Venezuela accounted for more than half of the slowdown, it said in a monthly report.

Pound drops after Brexit-fuelled highs

The pound jumped and Asian shares rallied on Tuesday after the European Commission agreed to changes in a Brexit deal ahead of a vote in the British parliament on a divorce agreement.

European Commission head Jean-Claude Juncker agreed to additional assurances in an updated Brexit deal with British Prime Minister Theresa May on Monday, but warned UK lawmakers would not get a third chance to endorse it.

Sterling, which had risen ahead of the talks between May and Juncker, extended gains in hopes the changes may be enough to sway rebellious British lawmakers who have threatened to vote down May's plan again on Tuesday.

The pound was up 0.5 per cent, buying $1.3215 and taking its gains over two days to more than 1.5 per cent.

A lower likelihood of crashing out of the EU with no Brexit deal could help to inject some bullish sentiment into equity markets by eliminating one of the three major concerns of global investors, alongside trade and slowing global growth, said Greg McKenna, strategist at McKenna Macro.

"Take Brexit off the table and I think some of the real money flows that appear to have turned up late last week are likely to be there again. So I think it helps change the backdrop a little bit," he said.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 1.08 per cent, with early gains reinforced by a rise in Chinese shares and oil companies, which were buoyed by higher oil prices.

Chinese blue chips rose 1.3 per cent, extending the previous day's 2 per cent gain.

Despite slowing domestic economic growth and uncertainty about the outlook for trade negotiations between China and the United States, Chinese markets have been buoyed this year by investors' expectations of more stimulus to cushion any downturn.

The CSI300 index has risen more than 25 per cent this year.

But Oliver Jones, market economist at Capital Economics cautioned that the Chinese rally is "built on shaky foundations."

"The surge in China's mainland equity markets since the start of the year looks excessive, even allowing for renewed optimism about stimulus in China and the possibility of a US-China trade deal," he said in a note.

"Since we are anticipating more economic weakness in both China and the rest of the world regardless, we suspect that the Shanghai and Shenzhen markets will fall back sharply later in the year."

Australian shares were up 0.4per cent, while Japan's Nikkei stock index jumped 1.9 per cent, helped by a weaker yen.

The amended Brexit deal gave a further boost to investors' appetite for riskier assets, after global equity indexes climbed overnight on gains in technology stocks and expectations of more stimulus from China.

US shares rebounded from a week-long losing streak, with news that US chip supplier Nvidia Corp has agreed to buy Israeli chip designer Mellanox Technologies Ltd for $6.8 billion helping to boost tech shares.

A nearly 7 per cent gain in Nvidia shares helped to propel the Nasdaq Composite 2.02 per cent&nbsp;higher, to 7,558.06 points.

The Dow Jones Industrial Average rose 0.79 per cent, with gains tempered by a 5.3 per cent drop in Boeing shares after some airlines grounded the company's new 737 MAX 8 passenger jet following a second deadly crash of the airliner in five months.

The S&amp;P 500 gained 1.47 per cent to 2,783.3.

RISING YIELDS

The market's turn toward riskier assets lifted yields on US Treasury bonds, with benchmark 10-year Treasury notes at 2.6645 percent compared with its U.S. close of 2.641 per cent on Monday.

The two-year yield was at 2.4998 per cent compared with a US close of 2.477 per cent.

The dollar index, which measures the greenback against a basket of rivals, shed 0.2 per cent to 97.036. But rising risk appetite weighed on the safe-haven yen, pushing the dollar up 0.16 per cent to 111.37.

The euro was up 0.13 per cent on the day at $1.1262.

In commodity markets, oil prices rose on a combination of strong demand and supply cuts by the Organization of the Petrolum Exporting Countries (OPEC).

A political and economic crisis in OPEC-member Venezuela is also seen as lifting crude prices.

Venezuela's opposition-run congress on Monday declared a "state of alarm" over a five-day power blackout that has crippled the country's oil exports and left millions of citizens scrambling to find food and water.

US crude was up 0.5 per cent at $57.08 a barrel and Brent crude was 0.4 per cent higher at $66.84.

Spot gold jumped 0.2 per cent to $1,296.45 per ounce.

The pound jumped and Asian shares rallied on Tuesday after the European Commission agreed to changes in a Brexit deal ahead of a vote in the British parliament on a divorce agreement.

The pound jumped and Asian shares rallied on Tuesday after the European Commission agreed to changes in a Brexit deal ahead of a vote in the British parliament on a divorce agreement. European Commission head Jean-Claude Juncker agreed to additional assurances in an updated Brexit deal with British Prime Minister Theresa May on Monday, but warned UK lawmakers would not get a third chance to endorse it. Sterling, which had risen ahead of the talks between May and Juncker, extended gains in hopes the changes may be enough to sway rebellious British lawmakers who have threatened to vote down May's plan again on Tuesday. The pound was up 0.5 per cent, buying $1.3215 and taking its gains over two days to more than 1.5 per cent. A lower likelihood of crashing out of the EU with no Brexit deal could help to inject some bullish sentiment into equity markets by eliminating one of the three major concerns of global investors, alongside trade and slowing global growth, said Greg McKenna, strategist at McKenna Macro. "Take Brexit off the table and I think some of the real money flows that appear to have turned up late last week are likely to be there again. So I think it helps change the backdrop a little bit," he said. MSCI's broadest index of Asia-Pacific shares outside Japan was up 1.08 per cent, with early gains reinforced by a rise in Chinese shares and oil companies, which were buoyed by higher oil prices. Chinese blue chips rose 1.3 per cent, extending the previous day's 2 per cent gain. Despite slowing domestic economic growth and uncertainty about the outlook for trade negotiations between China and the United States, Chinese markets have been buoyed this year by investors' expectations of more stimulus to cushion any downturn. The CSI300 index has risen more than 25 per cent this year. But Oliver Jones, market economist at Capital Economics cautioned that the Chinese rally is "built on shaky foundations." "The surge in China's mainland equity markets since the start of the year looks excessive, even allowing for renewed optimism about stimulus in China and the possibility of a US-China trade deal," he said in a note. "Since we are anticipating more economic weakness in both China and the rest of the world regardless, we suspect that the Shanghai and Shenzhen markets will fall back sharply later in the year." Australian shares were up 0.4per cent, while Japan's Nikkei stock index jumped 1.9 per cent, helped by a weaker yen. The amended Brexit deal gave a further boost to investors' appetite for riskier assets, after global equity indexes climbed overnight on gains in technology stocks and expectations of more stimulus from China. US shares rebounded from a week-long losing streak, with news that US chip supplier Nvidia Corp has agreed to buy Israeli chip designer Mellanox Technologies Ltd for $6.8 billion helping to boost tech shares. A nearly 7 per cent gain in Nvidia shares helped to propel the Nasdaq Composite 2.02 per cent higher, to 7,558.06 points. The Dow Jones Industrial Average rose 0.79 per cent, with gains tempered by a 5.3 per cent drop in Boeing shares after some airlines grounded the company's new 737 MAX 8 passenger jet following a second deadly crash of the airliner in five months. The S&P 500 gained 1.47 per cent to 2,783.3. RISING YIELDS The market's turn toward riskier assets lifted yields on US Treasury bonds, with benchmark 10-year Treasury notes at 2.6645 percent compared with its U.S. close of 2.641 per cent on Monday. The two-year yield was at 2.4998 per cent compared with a US close of 2.477 per cent. The dollar index, which measures the greenback against a basket of rivals, shed 0.2 per cent to 97.036. But rising risk appetite weighed on the safe-haven yen, pushing the dollar up 0.16 per cent to 111.37. The euro was up 0.13 per cent on the day at $1.1262. In commodity markets, oil prices rose on a combination of strong demand and supply cuts by the Organization of the Petrolum Exporting Countries (OPEC). A political and economic crisis in OPEC-member Venezuela is also seen as lifting crude prices. Venezuela's opposition-run congress on Monday declared a "state of alarm" over a five-day power blackout that has crippled the country's oil exports and left millions of citizens scrambling to find food and water. US crude was up 0.5 per cent at $57.08 a barrel and Brent crude was 0.4 per cent higher at $66.84. Spot gold jumped 0.2 per cent to $1,296.45 per ounce.

Pound jumps, Asian shares rise after changes to Brexit deal

The pound edged down Wednesday after the record defeat of British Prime Minister Theresa May's Brexit plan but mostly held its ground as investors consider the next likely developments in the long-running saga.

The sterling tanked to a near two-year low soon after the government's proposal on leaving the European Union was soundly beaten Tuesday evening, but it soon bounced back as traders bet there would not be a "no-deal" exit.

And while it was slightly lower in Asia, <a href="http://www.wionews.com/opinions/why-brexit-is-causing-turmoil-for-the-pound-and-other-markets-189974">the pound managed to avoid the sort of pummelling</a> many had predicted, and analysts say the positive news is that the options for the future are narrowing.

With May expected to win a vote of no confidence called by the opposition Labour Party on Wednesday, the talk will move to what happens next.

Analysts say May could ask to delay Britain's March 29 exit from the bloc as she looks for a more palatable agreement from her EU peers, while there is growing speculation of a general election and even another referendum.

"Momentum is shifting away from the harder Brexit route and towards a number of options ranging from postponement and second referendum. That is pound supportive," said Gavin Friend at National Australia Bank.

But he added: "I don't see the pound rallying much until markets are sure the (ruling) Conservatives have seen off the confidence motion."

Meanwhile, London may still leave the bloc without a backup.

"We cannot ignore the fact that it takes very little effort for no-deal, whilst it takes a vast amount of effort to avoid it," warned Neil Wilson, chief market analyst at Markets.com.

<a href="http://www.wionews.com/business-economy/global-markets-china-trade-shock-rattles-european-stocks-commodities-190200">Asian equity markets</a> mostly rose after Tuesday's rally that was fuelled by Chinese plans to cut taxes in a bid to support the stuttering economy.

However, traders are growing increasingly worried about the lack of movement in the US over the government shutdown, which is now in its fourth week, with both sides digging their heels in.

Tokyo ended off 0.6 per cent, but Hong Kong rose 0.2 per cent to build on Tuesday's two per cent rally while Shanghai was flat.

Sydney and Seoul each rose 0.4 per cent, while Singapore added 0.3 per cent and Wellington put on 0.7 per cent with Mumbai 0.2 per cent higher.

Investors are now gearing up for the start of the corporate earnings season and some are concerned that the effects of recent soft economic data globally — as well as the China-US trade war — will begin to show up in accounts.

While it was slightly lower in Asia, the pound managed to avoid the sort of pummelling many had predicted.

The pound edged down Wednesday after the record defeat of British Prime Minister Theresa May's Brexit plan but mostly held its ground as investors consider the next likely developments in the long-running saga. The sterling tanked to a near two-year low soon after the government's proposal on leaving the European Union was soundly beaten Tuesday evening, but it soon bounced back as traders bet there would not be a "no-deal" exit. And while it was slightly lower in Asia, the pound managed to avoid the sort of pummelling many had predicted, and analysts say the positive news is that the options for the future are narrowing. With May expected to win a vote of no confidence called by the opposition Labour Party on Wednesday, the talk will move to what happens next. Analysts say May could ask to delay Britain's March 29 exit from the bloc as she looks for a more palatable agreement from her EU peers, while there is growing speculation of a general election and even another referendum. "Momentum is shifting away from the harder Brexit route and towards a number of options ranging from postponement and second referendum. That is pound supportive," said Gavin Friend at National Australia Bank. But he added: "I don't see the pound rallying much until markets are sure the (ruling) Conservatives have seen off the confidence motion." Meanwhile, London may still leave the bloc without a backup. "We cannot ignore the fact that it takes very little effort for no-deal, whilst it takes a vast amount of effort to avoid it," warned Neil Wilson, chief market analyst at Markets.com. Asian equity markets mostly rose after Tuesday's rally that was fuelled by Chinese plans to cut taxes in a bid to support the stuttering economy. However, traders are growing increasingly worried about the lack of movement in the US over the government shutdown, which is now in its fourth week, with both sides digging their heels in. Tokyo ended off 0.6 per cent, but Hong Kong rose 0.2 per cent to build on Tuesday's two per cent rally while Shanghai was flat. Sydney and Seoul each rose 0.4 per cent, while Singapore added 0.3 per cent and Wellington put on 0.7 per cent with Mumbai 0.2 per cent higher. Investors are now gearing up for the start of the corporate earnings season and some are concerned that the effects of recent soft economic data globally — as well as the China-US trade war — will begin to show up in accounts.

Pound stands firm after May loss, Asian equity markets rise

The pound rebounded slightly Friday after Britain's currency was hammered by Brexit fears, while stock markets diverged and oil prices rallied once more.

Around 1145 GMT, the pound was up about 0.35 per cent against the dollar and euro.

The UK currency had slumped 1.7 per cent against the dollar on Thursday, the biggest drop for more than two years.

The same day, the euro jumped 1.9 per cent against the pound, its strongest performance since June 2016, or immediate aftermath of the Brexit referendum.

"Stability in the pound... could be short-lived, with clamours for a vote of no confidence from Conservative Brexiteers meaning the political upheaval will continue as we end the week," noted Joshua Mahony, market analyst at IG trading group.

British Prime Minister Theresa May faced the public on Friday to defend her Brexit deal as she battles to salvage the agreement and her own political future.

May made a rare outing on a radio phone-in during which she faced a call to step down after a tumultuous Thursday in which ministers resigned and members of her own party plotted to oust her.

Brexiteer MPs fear the draft deal would keep Britain shackled to the Brussels, while EU supporters say it would leave the UK on worse terms than it has inside the bloc.

Elsewhere on Friday, European stock markets traded narrowly mixed.

European Central Bank President Mario Draghi on Friday said that he saw "no reason" why growth in the eurozone should wither even after a sharp slowdown in the third quarter.

Asian stock markets meanwhile swung throughout Friday as investors weighed China-US trade speculation.

Hopes that the world's top two economies are making efforts to resolve their painful tariffs standoff provided support to global markets, though conflicting reports were keeping any optimism in check.

On Thursday it was reported that China had handed the US a number of trade concessions as part of a move to smooth relations ahead of a G20 summit where Donald Trump is expected to meet Chinese President Xi Jinping.

The Financial Times said the two sides were stepping up efforts and that US Trade Representative Robert Lighthizer had told business leaders the next round of tariffs would be put on hold. While Lighthizer's office denied that, observers said the news still provided some hope.

In commodities trading, oil prices rose strongly, having been hammered by oversupply and weak demand concerns earlier this week.

Despite data showing another jump in US stockpiles the commodity is enjoying some much-needed buying interest after kingpin Saudi Arabia said it plans to cut output and called on other producers to follow suit.

Adding to the upward pressure on crude futures are simmering tensions between Riyadh and Washington over the death of journalist Jamal Khashoggi, with the US imposing sanctions on several senior officials in the Saudi government.

Rob Thummel, managing director at Tortoise, said the imposition of the sanctions "puts some risk back into the market", which had been hit by a continuous build-up in US inventories.

Bitcoin meanwhile recovered to stand at $5,499.49.

Key figures around 1135 GMT

Pound/dollar: UP at $1.2812 from $1.2778 at 2200 GMT

Euro/pound: DOWN at 88.43 pence from 88.64 pence

Euro/dollar: UP at $1.1329 from $1.1325&nbsp;

London - FTSE 100: DOWN 0.4 per cent at 7,012.05 points

Frankfurt - DAX 30: UP 0.1 per cent at 11,359.91

Paris - CAC 40: DOWN 0.1 per cent at 5,029.29

EURO STOXX 50: DOWN 0.1 per cent at 3,186.63&nbsp;

Tokyo - Nikkei 225: DOWN 0.6 per cent at 21,680.34 (close)

Hong Kong - Hang Seng: UP 0.3 per cent at 26,183.53 (close)

Shanghai - Composite: UP 0.4 per cent at 2,679.11 (close)

New York - Dow: UP 0.8 per cent at 25,290.39 (close)

Oil - Brent Crude: UP $1.13 at $67.75 per barrel

Oil - West Texas Intermediate: UP 92 cents at $57.38

The pound rebounded slightly Friday after Britain's currency was hammered by Brexit fears, while stock markets diverged and oil prices rallied once more. Around 1145 GMT, the pound was up about 0.

The pound rebounded slightly Friday after Britain's currency was hammered by Brexit fears, while stock markets diverged and oil prices rallied once more. Around 1145 GMT, the pound was up about 0.35 per cent against the dollar and euro. The UK currency had slumped 1.7 per cent against the dollar on Thursday, the biggest drop for more than two years. The same day, the euro jumped 1.9 per cent against the pound, its strongest performance since June 2016, or immediate aftermath of the Brexit referendum. "Stability in the pound... could be short-lived, with clamours for a vote of no confidence from Conservative Brexiteers meaning the political upheaval will continue as we end the week," noted Joshua Mahony, market analyst at IG trading group. British Prime Minister Theresa May faced the public on Friday to defend her Brexit deal as she battles to salvage the agreement and her own political future. May made a rare outing on a radio phone-in during which she faced a call to step down after a tumultuous Thursday in which ministers resigned and members of her own party plotted to oust her. Brexiteer MPs fear the draft deal would keep Britain shackled to the Brussels, while EU supporters say it would leave the UK on worse terms than it has inside the bloc. Elsewhere on Friday, European stock markets traded narrowly mixed. European Central Bank President Mario Draghi on Friday said that he saw "no reason" why growth in the eurozone should wither even after a sharp slowdown in the third quarter. Asian stock markets meanwhile swung throughout Friday as investors weighed China-US trade speculation. Hopes that the world's top two economies are making efforts to resolve their painful tariffs standoff provided support to global markets, though conflicting reports were keeping any optimism in check. On Thursday it was reported that China had handed the US a number of trade concessions as part of a move to smooth relations ahead of a G20 summit where Donald Trump is expected to meet Chinese President Xi Jinping. The Financial Times said the two sides were stepping up efforts and that US Trade Representative Robert Lighthizer had told business leaders the next round of tariffs would be put on hold. While Lighthizer's office denied that, observers said the news still provided some hope. In commodities trading, oil prices rose strongly, having been hammered by oversupply and weak demand concerns earlier this week. Despite data showing another jump in US stockpiles the commodity is enjoying some much-needed buying interest after kingpin Saudi Arabia said it plans to cut output and called on other producers to follow suit. Adding to the upward pressure on crude futures are simmering tensions between Riyadh and Washington over the death of journalist Jamal Khashoggi, with the US imposing sanctions on several senior officials in the Saudi government. Rob Thummel, managing director at Tortoise, said the imposition of the sanctions "puts some risk back into the market", which had been hit by a continuous build-up in US inventories. Bitcoin meanwhile recovered to stand at $5,499.49. Key figures around 1135 GMT Pound/dollar: UP at $1.2812 from $1.2778 at 2200 GMT Euro/pound: DOWN at 88.43 pence from 88.64 pence Euro/dollar: UP at $1.1329 from $1.1325 London - FTSE 100: DOWN 0.4 per cent at 7,012.05 points Frankfurt - DAX 30: UP 0.1 per cent at 11,359.91 Paris - CAC 40: DOWN 0.1 per cent at 5,029.29 EURO STOXX 50: DOWN 0.1 per cent at 3,186.63 Tokyo - Nikkei 225: DOWN 0.6 per cent at 21,680.34 (close) Hong Kong - Hang Seng: UP 0.3 per cent at 26,183.53 (close) Shanghai - Composite: UP 0.4 per cent at 2,679.11 (close) New York - Dow: UP 0.8 per cent at 25,290.39 (close) Oil - Brent Crude: UP $1.13 at $67.75 per barrel Oil - West Texas Intermediate: UP 92 cents at $57.38

Pound rebounds after Brexit upheaval rout

British household spending grew at its&nbsp;weakest pace since late 2014 in the three months to June as the effect of a&nbsp;weaker&nbsp;pound&nbsp;since last year&#39;s Brexit vote weighed on Britons&#39; spending power, official statistics showed on Thursday.

Year-on-year spending growth dropped to 2.0 percent from 2.6 percent after expanding just 0.1 percent in the second quarter, the Office for National Statistics said.

Overall growth in gross domestic product was unrevised from an earlier estimate at 0.3 percent on a quarterly basis and 1.7 percent annually, the ONS added - representing the&nbsp;weakest start to any year since 2012.

&quot;GDP growth has slowed markedly in the first half of the year,&quot; ONS statistician Darren Morgan said. &quot;Household spending grew&nbsp;weakly, with the lower-value&nbsp;pound&nbsp;hitting household budgets,&quot; he added.

Sterling has fallen by around 15 percent on a trade-weighted since June 2016&#39;s vote to leave the European Union, pushing consumer price inflation to its highest in nearly four years in May, and added to its losses after the latest data.

Thursday&#39;s figures also showed that year-on-year business investment growth slowed to zero from 0.7 percent in the first quarter, while net trade dragged down the annual growth rate by 0.5 percent.

Britain&#39;s economy grew 1.8 percent last year, one of the fastest rates among the world&#39;s seven largest advanced economies, capped by the growth of 0.7 percent in the last three months of the year.

But that growth relied heavily on robust consumer spending, which this year has come under increased pressure from rising inflation as stores push up prices in response to Sterling&#39;s sharp fall after the Brexit vote.

The Bank of England said earlier this month that it expected the economy to grow 1.6 percent this year - slower than it had previously forecast but in line with the average expectation of economists polled by Reuters.

While it expects growth in household consumption to slow to 1.75 percent this year as inflation approaches 3 percent, it forecast export volumes would rise by 3.5 percent and business investment would rise by 1 percent.

Few economists expect the BoE to raise interest rates before 2019 as inflation is forecast to fall next year once the impact of sterling&#39;s&nbsp;weakness fades, while uncertainty during two years of Brexit talks is predicted to drag on growth.

Overall growth in gross domestic product was unrevised from an earlier estimate at 0.3 percent on a quarterly basis and 1.7 percent annually, the ONS said

British household spending grew at its weakest pace since late 2014 in the three months to June as the effect of a weaker pound since last year's Brexit vote weighed on Britons' spending power, official statistics showed on Thursday. Year-on-year spending growth dropped to 2.0 percent from 2.6 percent after expanding just 0.1 percent in the second quarter, the Office for National Statistics said. Overall growth in gross domestic product was unrevised from an earlier estimate at 0.3 percent on a quarterly basis and 1.7 percent annually, the ONS added - representing the weakest start to any year since 2012. "GDP growth has slowed markedly in the first half of the year," ONS statistician Darren Morgan said. "Household spending grew weakly, with the lower-value pound hitting household budgets," he added. Sterling has fallen by around 15 percent on a trade-weighted since June 2016's vote to leave the European Union, pushing consumer price inflation to its highest in nearly four years in May, and added to its losses after the latest data. Thursday's figures also showed that year-on-year business investment growth slowed to zero from 0.7 percent in the first quarter, while net trade dragged down the annual growth rate by 0.5 percent. Britain's economy grew 1.8 percent last year, one of the fastest rates among the world's seven largest advanced economies, capped by the growth of 0.7 percent in the last three months of the year. But that growth relied heavily on robust consumer spending, which this year has come under increased pressure from rising inflation as stores push up prices in response to Sterling's sharp fall after the Brexit vote. The Bank of England said earlier this month that it expected the economy to grow 1.6 percent this year - slower than it had previously forecast but in line with the average expectation of economists polled by Reuters. While it expects growth in household consumption to slow to 1.75 percent this year as inflation approaches 3 percent, it forecast export volumes would rise by 3.5 percent and business investment would rise by 1 percent. Few economists expect the BoE to raise interest rates before 2019 as inflation is forecast to fall next year once the impact of sterling's weakness fades, while uncertainty during two years of Brexit talks is predicted to drag on growth.

Weaker Pound takes toll on British household spending

While most of Scotland voted against leaving the European Union, whisky makers have quietly been raising a wee dram to a side-effect of the Brexit vote -- a plunge in the value of the Pound.

The currency devaluation has made exports cheaper, generating a bump since 90 per cent of Scotch whisky is sold outside Britain, although the industry warns the longer-term outlook is far more cloudy.

David Williamson, communications director for the Scotch Whisky Association, said: &quot;Because of the relative strength of the pound we&#39;re certainly getting anecdotal reports back from our member companies that has helped to boost exports.&quot;

And Tony Reeman-Clark, who runs the Strathearn Distillery in Perthshire -- a relative newcomer to the market -- said: &quot;I have been talking to people from bigger distilleries who said there has been a lot of interest, and a lot of sales, because of the weak pound.&quot;

Reeman-Clark, who is also the founder of the Scottish Craft Distillers Association, said Strathearn began producing whisky three years ago and its first 100 bottles were auctioned off on 1 December.

The first sold for 4,150 pounds to an Italian buyer, far exceeding Reeman-Clark&#39;s expectations.

He said he had received bids from as far away as &quot;Auckland, Beijing, Hong Kong, Israel, Germany, America, all over the world&quot;.

Since the shock June vote the Pound has tumbled about 15 per cent against the greenback and Graham Hutcheon, the operations director of distiller Edrington, said the industry was having a &quot;jamboree time&quot;. However, he urged the government to provide clarity on Brexit, Bloomberg news agency reported.

&quot;We don&#39;t know the questions to ask, let alone answer,&quot; said Hutcheon, whose company makes whiskies such as Macallan and The Famous Grouse.

More than 10,000 people are now directly employed in the industry -- up six per cent in the past three years - while a further 30,000 people are employed in its supply chain from bottling to distribution.

The main markets in the first half of this year were the US (357.4 million pounds), France (193.1 million pounds) and Singapore (99.6 million pounds), with total exports equivalent to 533 million bottles of whisky.

More than 500 million bottles worth around 1.7 billion pounds are exported from Britain every year. The full impact of Brexit is not expected to be revealed until distillers complete their annual returns in early 2017.

(AFP)

The Pound's devaluation has made exporting Scotch whisky cheaper, and 90% is sold outside Britain, but the long-term forecast is uncertain

While most of Scotland voted against leaving the European Union, whisky makers have quietly been raising a wee dram to a side-effect of the Brexit vote -- a plunge in the value of the Pound. The currency devaluation has made exports cheaper, generating a bump since 90 per cent of Scotch whisky is sold outside Britain, although the industry warns the longer-term outlook is far more cloudy. David Williamson, communications director for the Scotch Whisky Association, said: "Because of the relative strength of the pound we're certainly getting anecdotal reports back from our member companies that has helped to boost exports." And Tony Reeman-Clark, who runs the Strathearn Distillery in Perthshire -- a relative newcomer to the market -- said: "I have been talking to people from bigger distilleries who said there has been a lot of interest, and a lot of sales, because of the weak pound." Reeman-Clark, who is also the founder of the Scottish Craft Distillers Association, said Strathearn began producing whisky three years ago and its first 100 bottles were auctioned off on 1 December. The first sold for 4,150 pounds to an Italian buyer, far exceeding Reeman-Clark's expectations. He said he had received bids from as far away as "Auckland, Beijing, Hong Kong, Israel, Germany, America, all over the world". Since the shock June vote the Pound has tumbled about 15 per cent against the greenback and Graham Hutcheon, the operations director of distiller Edrington, said the industry was having a "jamboree time". However, he urged the government to provide clarity on Brexit, Bloomberg news agency reported. "We don't know the questions to ask, let alone answer," said Hutcheon, whose company makes whiskies such as Macallan and The Famous Grouse. More than 10,000 people are now directly employed in the industry -- up six per cent in the past three years - while a further 30,000 people are employed in its supply chain from bottling to distribution. The main markets in the first half of this year were the US (357.4 million pounds), France (193.1 million pounds) and Singapore (99.6 million pounds), with total exports equivalent to 533 million bottles of whisky. More than 500 million bottles worth around 1.7 billion pounds are exported from Britain every year. The full impact of Brexit is not expected to be revealed until distillers complete their annual returns in early 2017. (AFP)

In pro-EU Scotland, whisky makers cheer Brexit boon

The new &pound;5 notes released by the Bank of England have sparked outrage on social media after the bank confirmed that it contained animal fat in the form of tallow, a substance used in candles and soaps, the Independent reported.&nbsp;

The new flexible plastic notes are designed to be cleaner and stronger, but the use of tallow has angered vegans and vegetarians across the UK.&nbsp;

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<blockquote class="twitter-tweet" data-lang="en">
<a href="https://twitter.com/SteffiRox">@SteffiRox</a> there is a trace of tallow in the polymer pellets used in the base substrate of the polymer &pound;5 notes
&mdash; Bank of England (@bankofengland) <a href="https://twitter.com/bankofengland/status/803273440807550976">November 28, 2016</a></blockquote>
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&nbsp;

More than 5,000 have already signed a petition launched to remove the new plastic fivers from circulation. The note became legal tender in September.&nbsp;

The petition started by Doug Maw at change.org read, &quot;The new &pound;5 notes contain animal fat in the form of tallow. This is unacceptable to millions of vegans, vegetarians, Hindus, Sikhs, Jains and others in the UK.&quot;

&quot;We demand that you cease to use animal products in the production of currency that we have to use,&rdquo; it added.&nbsp;

(WION)&nbsp; 
&nbsp;

The Bank of England's tweet, confirming the note contains tallow to make it more durable, sparked a social media backlash

The new £5 notes released by the Bank of England have sparked outrage on social media after the bank confirmed that it contained animal fat in the form of tallow, a substance used in candles and soaps, the Independent reported. The new flexible plastic notes are designed to be cleaner and stronger, but the use of tallow has angered vegans and vegetarians across the UK. @SteffiRox there is a trace of tallow in the polymer pellets used in the base substrate of the polymer £5 notes — Bank of England (@bankofengland) November 28, 2016 × More than 5,000 have already signed a petition launched to remove the new plastic fivers from circulation. The note became legal tender in September. The petition started by Doug Maw at change.org read, "The new £5 notes contain animal fat in the form of tallow. This is unacceptable to millions of vegans, vegetarians, Hindus, Sikhs, Jains and others in the UK." "We demand that you cease to use animal products in the production of currency that we have to use,” it added. (WION)

UK: New ?5 note containing animal fat angers vegans

In recent years, offering citizenship or permanent residencies has grown to become a lucrative business opportunity for countries. With more and more countries joining the list of those that offer immediate citizenship, people have a chance at moving beyond borders, more than a tourist.

Here is a list of countries that sell their citizenship, if you have the money to buy it:

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Countries and their citizenship program (Table) (WION)
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<ul>
	<li>Bulgaria</li>
</ul>

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A pedestrian walks past a puddle near a tree decorated with Christmas lights in Sofia, Bulgaria (AFP)
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Allows: Visa-free travel to 153 countries 
The country ties up your cash for 5 years interest free. It will take two years to get the passport and you will be required to visit Bulgaria twice. Residence is granted only after a clean background check. Bulgaria is only one of two countries where the principal amount can be returned to you.

<ul>
	<li>Hungary</li>
</ul>

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Sz&eacute;chenyi Chain Bridge, Budapest, Hungary (Others)
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Allows: Visa-free travel to 152 countries 
It has one of the fastest application processes, which can be completed within 30 days. It is a guaranteed investment plan that can be returned after 5 years. The passport gives free movement throughout Europe&#39;s Schengen zone.

<ul>
	<li>St. Lucia</li>
</ul>

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St Lucia, Caribbean Island (Others)
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Allows: Visa-free travel to 121 countries and 180 days in the Schengen area 
Instead of paying the amount, you could also invest $550,000 and get a passport immediately. The capital will be returned in 5 years. &nbsp;

<ul>
	<li>Cyprus</li>
</ul>

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Paphos castle at night in Cyprus (Others)
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Allows: Visa-free travel to 166 countries 
Cyprus is the third smallest nation in the European Union. It started its citizenship program after the country faced a severe economic recession in 2013.&nbsp;

<ul>
	<li>Dominica</li>
</ul>

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Typical landscape near the sea along the eastern coast of Dominica (Others)
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Allows: Visa-free travel to 91 countries 
It is the least expensive of all the passports in this list.

<ul>
	<li>Antigua and Barbuda</li>
</ul>

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Antigua, Carlisle Bay, Caribbean (Others)
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Allows: Visa-free travel to 132 countries

<ul>
	<li>St. Kitts and Nevis</li>
</ul>

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View of St. Kitts from a ship on the coast (Others)
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Allows: Visa-free travel to 132 countries, which includes Brazil as the latest addition 
St. Kitts and Nevis recorded the highest number of passport sales in the last year. Just pay the money or invest in property and you will be given a passport without even a visit.&nbsp;

<ul>
	<li>Grenada</li>
</ul>

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Grenada (Others)
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Allows: Visa-free travel to 110 countries 
It is the second passport on this list apart from St. Kitts that is not necessarily on everyone&rsquo;s radar and where transaction can be completed in private.

In many nations, foreigners can now purchase citizenship legitimately in return for an investment. There are, however, two forms of residency programs - one that is immediate and one that entails &ldquo;staying for a minimum period of time.&rdquo;&nbsp;The recent spurt&nbsp;in the number of applications&nbsp;for residency in&nbsp;these countries has&nbsp;proven that people are increasingly&nbsp;keen to move and experience a new life in places that might be far removed from their countries of birth. This works well for these host countries too, as the influx of foreign money helps build their infrastructure and economies.&nbsp;

(Contributed by: Zeba Khan)

Writing one cheque can give you a new identity and visa-free travel to more than 100 countries around the world

In recent years, offering citizenship or permanent residencies has grown to become a lucrative business opportunity for countries. With more and more countries joining the list of those that offer immediate citizenship, people have a chance at moving beyond borders, more than a tourist. Here is a list of countries that sell their citizenship, if you have the money to buy it: Countries and their citizenship program (Table) (WION) × Bulgaria A pedestrian walks past a puddle near a tree decorated with Christmas lights in Sofia, Bulgaria (AFP) × Allows: Visa-free travel to 153 countries The country ties up your cash for 5 years interest free. It will take two years to get the passport and you will be required to visit Bulgaria twice. Residence is granted only after a clean background check. Bulgaria is only one of two countries where the principal amount can be returned to you. Hungary Széchenyi Chain Bridge, Budapest, Hungary (Others) × Allows: Visa-free travel to 152 countries It has one of the fastest application processes, which can be completed within 30 days. It is a guaranteed investment plan that can be returned after 5 years. The passport gives free movement throughout Europe's Schengen zone. St. Lucia St Lucia, Caribbean Island (Others) × Allows: Visa-free travel to 121 countries and 180 days in the Schengen area Instead of paying the amount, you could also invest $550,000 and get a passport immediately. The capital will be returned in 5 years. Cyprus Paphos castle at night in Cyprus (Others) × Allows: Visa-free travel to 166 countries Cyprus is the third smallest nation in the European Union. It started its citizenship program after the country faced a severe economic recession in 2013. Dominica Typical landscape near the sea along the eastern coast of Dominica (Others) × Allows: Visa-free travel to 91 countries It is the least expensive of all the passports in this list. Antigua and Barbuda Antigua, Carlisle Bay, Caribbean (Others) × Allows: Visa-free travel to 132 countries St. Kitts and Nevis View of St. Kitts from a ship on the coast (Others) × Allows: Visa-free travel to 132 countries, which includes Brazil as the latest addition St. Kitts and Nevis recorded the highest number of passport sales in the last year. Just pay the money or invest in property and you will be given a passport without even a visit. Grenada Grenada (Others) × Allows: Visa-free travel to 110 countries It is the second passport on this list apart from St. Kitts that is not necessarily on everyone’s radar and where transaction can be completed in private. In many nations, foreigners can now purchase citizenship legitimately in return for an investment. There are, however, two forms of residency programs - one that is immediate and one that entails “staying for a minimum period of time.” The recent spurt in the number of applications for residency in these countries has proven that people are increasingly keen to move and experience a new life in places that might be far removed from their countries of birth. This works well for these host countries too, as the influx of foreign money helps build their infrastructure and economies. (Contributed by: Zeba Khan)

These 8 countries sell their citizenship. Any takers?

The British pound slumped to a fresh three-year low against the euro Monday and edged lower on the dollar, as signs of weakness mounted in the British economy. 
 
At 86.80 pence on the euro, the pound was at its weakest level since August 2013. 
 
Meanwhile sterling fell to $1.2883, just barely above its $1.2798 post-Brexit vote level that marked a three-decade low against the US greenback. 
 
The currency&#39;s fall came as data from Britain showed London residential rents fell for the first time in six years in July, amid worries the June 23 vote to exit the European Union was already having an impact on the economy. 
 
The rental data came on the heels of numbers showing home prices fell for the second straight month. 
 
&quot;In the month of August, the British pound has been the weakest currency and the trend continued today,&quot; said Kathy Lien of BK Asset Management. 
 
&quot;The main reason why the currency is weak is because investors are worried about this week&#39;s UK economic reports.&quot; 
 
Even if the formal moves to leave the European Union will not be taken by the government until next year, Lien said, &quot;the damage has been done and consequences are just beginning to appear.&quot; 
 
2100 GMT Monday Friday 
 
EUR/USD 1.1183 1.1165 
 
EUR/JPY 113.23 113.07 
 
EUR/CHF 1.0877 1.0882 
 
EUR/GBP 0.8680 0.8643 
 
USD/JPY 101.25 101.27 
 
USD/CHF 0.9726 0.9747 
 
GBP/USD 1.2883 1.2918

The currency's fall comes as data showed London residential rents fell for the first time in six years in July

The British pound slumped to a fresh three-year low against the euro Monday and edged lower on the dollar, as signs of weakness mounted in the British economy. At 86.80 pence on the euro, the pound was at its weakest level since August 2013. Meanwhile sterling fell to $1.2883, just barely above its $1.2798 post-Brexit vote level that marked a three-decade low against the US greenback. The currency's fall came as data from Britain showed London residential rents fell for the first time in six years in July, amid worries the June 23 vote to exit the European Union was already having an impact on the economy. The rental data came on the heels of numbers showing home prices fell for the second straight month. "In the month of August, the British pound has been the weakest currency and the trend continued today," said Kathy Lien of BK Asset Management. "The main reason why the currency is weak is because investors are worried about this week's UK economic reports." Even if the formal moves to leave the European Union will not be taken by the government until next year, Lien said, "the damage has been done and consequences are just beginning to appear." 2100 GMT Monday Friday EUR/USD 1.1183 1.1165 EUR/JPY 113.23 113.07 EUR/CHF 1.0877 1.0882 EUR/GBP 0.8680 0.8643 USD/JPY 101.25 101.27 USD/CHF 0.9726 0.9747 GBP/USD 1.2883 1.2918

British Pound slumps to three-year low against Euro

France and Britain were vying for fifth place on the list of the world&#39;s biggest economies on Wednesday, with France nudging ahead after a renewed slump in the Pound in the wake of the Brexit vote, Reuters calculations showed. 
 
Britain&#39;s gross domestic product stood at 1.864 trillion Pounds in 2015, according to the last available figures from the International Monetary Fund. 
 
The average exchange rate for the year in question is commonly used for comparisons between countries. But using the current exchange rate, France has pulled slightly ahead. 
 
With the Pound falling below 1.17 Euros overnight for the first time since 2013, that means the size of the British economy in 2015 is now equivalent to 2.172 trillion Euros - less than France&#39;s official GDP of 2.182 trillion Euros last year. 
 
Britain&#39;s vote in a referendum on June 23 to quit the EU has hammered financial markets, rattled businesses and punished the pound, which was trading at 1.1650 Euros as of 1440 GMT. 
 
But volatile exchange rates meant the figures were hard to pin down. Britain briefly regained fifth spot after the pound broke above 1.17 Euros for a few hours on Wednesday, only to sag again in mid-afternoon trade. 
 
Britain and France, which have similar populations, have swapped positions before in the rankings. 
 
In 2014 Britain overtook France, six years after the financial crisis caused the pound to fall and allowed France to regain a crown it had lost in 1997. 
 
(Reuters)

The size of the British economy in 2015 is now 2.172 trillion Euros - less than France's official GDP of 2.182 trillion Euros last year

France and Britain were vying for fifth place on the list of the world's biggest economies on Wednesday, with France nudging ahead after a renewed slump in the Pound in the wake of the Brexit vote, Reuters calculations showed. Britain's gross domestic product stood at 1.864 trillion Pounds in 2015, according to the last available figures from the International Monetary Fund. The average exchange rate for the year in question is commonly used for comparisons between countries. But using the current exchange rate, France has pulled slightly ahead. With the Pound falling below 1.17 Euros overnight for the first time since 2013, that means the size of the British economy in 2015 is now equivalent to 2.172 trillion Euros - less than France's official GDP of 2.182 trillion Euros last year. Britain's vote in a referendum on June 23 to quit the EU has hammered financial markets, rattled businesses and punished the pound, which was trading at 1.1650 Euros as of 1440 GMT. But volatile exchange rates meant the figures were hard to pin down. Britain briefly regained fifth spot after the pound broke above 1.17 Euros for a few hours on Wednesday, only to sag again in mid-afternoon trade. Britain and France, which have similar populations, have swapped positions before in the rankings. In 2014 Britain overtook France, six years after the financial crisis caused the pound to fall and allowed France to regain a crown it had lost in 1997. (Reuters)

After Pound drops, France overtakes Britain as world's fifth-largest economy

The pound tumbled to a new 31-year low on Wednesday, dipping below $1.28 at one point before recovering a little, as investors shunned the currency after Britain&#39;s vote to leave the European Union. 
 
The pound, one of the main vehicles through which financial markets can express concern over the Brexit vote, fell as low as $1.2798 in Asian trading, its lowest since June 1985, before recovering to about $1.2965. That still left it 13 per cent below its levels before the June 23 referendum, and about 0.4 per cent down on the day. 
 
Against the Euro, Sterling hit a three-year trough, trading as weakly as at 86.29 pence per Euro before climbing back to about 85.25 pence, also down 0.3 per cent on the day. 
 
Worries have grown in the past two days about financial stress, highlighted by the Bank of England on Tuesday and by the suspension of trading by three of Britain&#39;s biggest property funds, following an increased number of investor redemption since the referendum. 
 
&quot;The pound is still very volatile after the Brexit vote, and still vulnerable to the downside,&quot; said Bank of Tokyo-Mitsubishi UFJ currency economist Lee Hardman. 
 
&quot;Yesterday the main trigger was the reports of signs of distress in the commercial real estate market, which the Bank of England highlighted as one of the financial stability risks in the UK. That created a fairly large sell-off...and Sterling is just recovering some of those falls.&quot; 
 
The latest of the property funds to announce a suspension in customer withdrawals was M&amp;G, the fund management arm of insurer Prudential, which made the announcement after the London market close on Tuesday. 
 
&quot;Clearly Asia came in and didn&#39;t like what it saw in the news flow,&quot; said UBS Wealth Management currency strategist Geoffrey Yu, adding that many international investors also have large exposures to the UK property market. 
 
The Bank of England also expressed concern on Tuesday about a fall in investor demand for British assets, which could make it harder to finance Britain&#39;s large current account deficit, piling further pressure on the pound. 
 
Rate cuts 
 
Next week the BoE will make a decision on interest rates, which are already at record lows. Investors are pricing in a 25 basis point rate cut in August, which is also helping to drive down the pound, but some reckon a cut could come next week. 
 
A Reuters poll of more than 60 foreign exchange strategists forecast the pound at $1.27 by year end from Monday&#39;s close of around $1.30. 
 
&quot;The market is still likely under-pricing BoE easing, with our economists forecasting a 25 basis point rate cut next week followed by a 25 basis point cut at the August meeting,&quot; wrote BNP Paribas strategists in a research note, adding that they also expected an asset-purchase programme to be announced at the November meeting. 
 
Yields on British 10, 20 and 30-year government bonds sank to fresh record lows, extending their slide since the day after the shock referendum result. 
 
The yield on 10-year gilts fell as low as 0.731 per cent, almost half its level on June 23, when Britons were voting in the referendum which many investors had expected to keep Britain in the EU. 
 
(Reuters)

The Pound fell as low as $1.2798 in Asian trading on Wednesday, its lowest since June 1985

The pound tumbled to a new 31-year low on Wednesday, dipping below $1.28 at one point before recovering a little, as investors shunned the currency after Britain's vote to leave the European Union. The pound, one of the main vehicles through which financial markets can express concern over the Brexit vote, fell as low as $1.2798 in Asian trading, its lowest since June 1985, before recovering to about $1.2965. That still left it 13 per cent below its levels before the June 23 referendum, and about 0.4 per cent down on the day. Against the Euro, Sterling hit a three-year trough, trading as weakly as at 86.29 pence per Euro before climbing back to about 85.25 pence, also down 0.3 per cent on the day. Worries have grown in the past two days about financial stress, highlighted by the Bank of England on Tuesday and by the suspension of trading by three of Britain's biggest property funds, following an increased number of investor redemption since the referendum. "The pound is still very volatile after the Brexit vote, and still vulnerable to the downside," said Bank of Tokyo-Mitsubishi UFJ currency economist Lee Hardman. "Yesterday the main trigger was the reports of signs of distress in the commercial real estate market, which the Bank of England highlighted as one of the financial stability risks in the UK. That created a fairly large sell-off...and Sterling is just recovering some of those falls." The latest of the property funds to announce a suspension in customer withdrawals was M&G, the fund management arm of insurer Prudential, which made the announcement after the London market close on Tuesday. "Clearly Asia came in and didn't like what it saw in the news flow," said UBS Wealth Management currency strategist Geoffrey Yu, adding that many international investors also have large exposures to the UK property market. The Bank of England also expressed concern on Tuesday about a fall in investor demand for British assets, which could make it harder to finance Britain's large current account deficit, piling further pressure on the pound. Rate cuts Next week the BoE will make a decision on interest rates, which are already at record lows. Investors are pricing in a 25 basis point rate cut in August, which is also helping to drive down the pound, but some reckon a cut could come next week. A Reuters poll of more than 60 foreign exchange strategists forecast the pound at $1.27 by year end from Monday's close of around $1.30. "The market is still likely under-pricing BoE easing, with our economists forecasting a 25 basis point rate cut next week followed by a 25 basis point cut at the August meeting," wrote BNP Paribas strategists in a research note, adding that they also expected an asset-purchase programme to be announced at the November meeting. Yields on British 10, 20 and 30-year government bonds sank to fresh record lows, extending their slide since the day after the shock referendum result. The yield on 10-year gilts fell as low as 0.731 per cent, almost half its level on June 23, when Britons were voting in the referendum which many investors had expected to keep Britain in the EU. (Reuters)

Pound falls to 31-year low as investors shun currency

Interior minister Theresa May opened up a strong lead on Tuesday in what is now a three-horse race to become Britain&#39;s next Prime Minister, but the first stage of voting was overshadowed by post-Brexit carnage for property investors and the Pound. 
 
In symptoms of market concern about the economic impact of leaving the European Union, sterling hit new 31-year lows and three funds investing in British property said they were suspending trading because too many people were rushing to withdraw their money at once. 
 
May won 165 votes in a first ballot of Conservative members of parliament and Andrea Leadsom, a junior energy minister, won 66, increasing the likelihood that Britain will get only its second woman Prime Minister after Margaret Thatcher. Justice secretary Michael Gove was third on 48. 
 
Former defence minister Liam Fox won the fewest votes, 16, and was eliminated from the battle to replace David Cameron, who has said he will step down after Britons voted in a June 23 referendum to break away from the EU. 
 
Soon afterwards, work and pensions minister Stephen Crabb, who placed fourth with 34 votes, said he was pulling out and throwing his &quot;wholehearted support&quot; behind May. Fox said he would also back her.&nbsp; 
 
May, 59, said: &quot;There is a big job before us: to unite our party and the country, to negotiate the best possible deal as we leave the EU, and to make Britain work for everyone.&nbsp;I am the only candidate capable of delivering these three things as Prime Minister, and tonight it is clear that I am also the only one capable of drawing support from the whole of the Conservative Party.&quot; 
 
&#39;No coronation&#39; 
 
The drawn-out selection process will ultimately be decided by about 150,000 Conservative Party members in September, once MPs have whittled the field down to two candidates. 
 
Given strong eurosceptic sentiment among grassroots Conservatives, Leadsom, 53, and Gove, 48, remain in contention. Both were leading voices in the victorious Leave campaign, while May favoured remaining inside the 28-nation EU. 
 
Leadsom backer Stewart Jackson told Sky News: &quot;This shows she&#39;s ready to go all the way, there isn&#39;t going to be a coronation&quot; of May. 
 
In the meantime, signs are multiplying that concern about the impact of Brexit on trade, investment and business confidence is starting to hit the economy. 
 
The 4.4-billion-Pound ($5.7 billion) Property Portfolio run by M&amp;G Investments, the fund arm of insurer Prudential, was the latest to suspend business on Tuesday afternoon. Insurer Aviva&#39;s fund arm had earlier stopped trading in its 1.8-billion-Pound UK Property Trust, while Standard Life Investments suspended a 2.9-billion-Pound fund late on Monday. 
 
Shares plunged in other property-related funds, and asset managers and insurers were also hit. 
 
The Pound, which has borne the brunt of market concern about potential damage to the economy, plumbed new 31-year lows and is now down more than 12 per cent since the referendum.&nbsp; 
 
&quot;There is evidence that some risks have begun to crystallise. The current outlook for UK financial stability is challenging,&quot; the Bank of England said, announcing measures to encourage banks to keep lending. 
 
In a possible blow to London&#39;s financial centre, Germany&#39;s Deutsche Boerse signalled on Tuesday that the headquarters of a European giant to be created from its merger with the London Stock Exchange Group may now have to be outside the United Kingdom. 
 
Voters were bombarded in the run-up to the referendum with warnings from Cameron and a host of financial institutions and think tanks that Brexit would plunge Britain into a self-inflicted recession by jeopardising its access to the EU&#39;s tariff-free single market. 
 
The Leave campaign derided such arguments as &#39;Project Fear&#39;, arguing Britain would prosper by regaining &#39;independence&#39; from Brussels and freeing itself to set its own laws, clinch its own trade deals and set a cap on immigration - something it cannot do under EU rules allowing free movement throughout the bloc. 
 
&#39;Bloody difficult woman&#39; 
 
Whoever wins the Conservative leadership and the keys to 10 Downing Street will have to stabilise the economy and unify a party that was deeply split by the referendum campaign. 
 
The victor will also need to decide when to initiate divorce proceedings with the EU, and how to extricate Britain from 43 years of membership while trying to negotiate favourable terms of trade. 
 
The most seasoned candidates in the field are May and Gove, who stunned colleagues and commentators alike when he abruptly withdrew his support for former London mayor Boris Johnson last week, effectively forcing him from the race. Leadsom entered parliament only six years ago after a long career in financial services, and has never served in the cabinet. 
 
Gove and Leadsom have both argued forcefully that the next prime minister should come from the winning side in the referendum, which would disqualify May. 
 
&quot;I&#39;ve managed to bring people together across the Conservative Party behind a hopeful and optimistic message of change, and I hope that I&#39;ll be able to take that message to the country,&quot; Gove said. 
 
In unguarded comments earlier on Tuesday, caught on camera and broadcast by Sky News, former Conservative minister Ken Clarke made disparaging remarks about all three contenders, saying that with Gove as Prime Minister &quot;we would go to war with at least three countries at once&quot;. 
 
He described May as &quot;a bloody difficult woman&quot;, but no more difficult than Thatcher, in whose cabinet he served. He added that she was &quot;good&quot;, but lacking in foreign policy experience. 
 
Of Leadsom, Clarke said: &quot;She does have experience in the city...She is not one of the tiny band of lunatics who think we can have a sort of glorious economic future outside the (EU) single market. So long as she understands that she&#39;s not to deliver on some of the extremely stupid things she&#39;s been saying.&quot;&nbsp; 
 
(Reuters)

The victor will need to decide when to pull out of the EU, and how to favourably extricate Britain after 43 years of membership

Interior minister Theresa May opened up a strong lead on Tuesday in what is now a three-horse race to become Britain's next Prime Minister, but the first stage of voting was overshadowed by post-Brexit carnage for property investors and the Pound. In symptoms of market concern about the economic impact of leaving the European Union, sterling hit new 31-year lows and three funds investing in British property said they were suspending trading because too many people were rushing to withdraw their money at once. May won 165 votes in a first ballot of Conservative members of parliament and Andrea Leadsom, a junior energy minister, won 66, increasing the likelihood that Britain will get only its second woman Prime Minister after Margaret Thatcher. Justice secretary Michael Gove was third on 48. Former defence minister Liam Fox won the fewest votes, 16, and was eliminated from the battle to replace David Cameron, who has said he will step down after Britons voted in a June 23 referendum to break away from the EU. Soon afterwards, work and pensions minister Stephen Crabb, who placed fourth with 34 votes, said he was pulling out and throwing his "wholehearted support" behind May. Fox said he would also back her. May, 59, said: "There is a big job before us: to unite our party and the country, to negotiate the best possible deal as we leave the EU, and to make Britain work for everyone. I am the only candidate capable of delivering these three things as Prime Minister, and tonight it is clear that I am also the only one capable of drawing support from the whole of the Conservative Party." 'No coronation' The drawn-out selection process will ultimately be decided by about 150,000 Conservative Party members in September, once MPs have whittled the field down to two candidates. Given strong eurosceptic sentiment among grassroots Conservatives, Leadsom, 53, and Gove, 48, remain in contention. Both were leading voices in the victorious Leave campaign, while May favoured remaining inside the 28-nation EU. Leadsom backer Stewart Jackson told Sky News: "This shows she's ready to go all the way, there isn't going to be a coronation" of May. In the meantime, signs are multiplying that concern about the impact of Brexit on trade, investment and business confidence is starting to hit the economy. The 4.4-billion-Pound ($5.7 billion) Property Portfolio run by M&G Investments, the fund arm of insurer Prudential, was the latest to suspend business on Tuesday afternoon. Insurer Aviva's fund arm had earlier stopped trading in its 1.8-billion-Pound UK Property Trust, while Standard Life Investments suspended a 2.9-billion-Pound fund late on Monday. Shares plunged in other property-related funds, and asset managers and insurers were also hit. The Pound, which has borne the brunt of market concern about potential damage to the economy, plumbed new 31-year lows and is now down more than 12 per cent since the referendum. "There is evidence that some risks have begun to crystallise. The current outlook for UK financial stability is challenging," the Bank of England said, announcing measures to encourage banks to keep lending. In a possible blow to London's financial centre, Germany's Deutsche Boerse signalled on Tuesday that the headquarters of a European giant to be created from its merger with the London Stock Exchange Group may now have to be outside the United Kingdom. Voters were bombarded in the run-up to the referendum with warnings from Cameron and a host of financial institutions and think tanks that Brexit would plunge Britain into a self-inflicted recession by jeopardising its access to the EU's tariff-free single market. The Leave campaign derided such arguments as 'Project Fear', arguing Britain would prosper by regaining 'independence' from Brussels and freeing itself to set its own laws, clinch its own trade deals and set a cap on immigration - something it cannot do under EU rules allowing free movement throughout the bloc. 'Bloody difficult woman' Whoever wins the Conservative leadership and the keys to 10 Downing Street will have to stabilise the economy and unify a party that was deeply split by the referendum campaign. The victor will also need to decide when to initiate divorce proceedings with the EU, and how to extricate Britain from 43 years of membership while trying to negotiate favourable terms of trade. The most seasoned candidates in the field are May and Gove, who stunned colleagues and commentators alike when he abruptly withdrew his support for former London mayor Boris Johnson last week, effectively forcing him from the race. Leadsom entered parliament only six years ago after a long career in financial services, and has never served in the cabinet. Gove and Leadsom have both argued forcefully that the next prime minister should come from the winning side in the referendum, which would disqualify May. "I've managed to bring people together across the Conservative Party behind a hopeful and optimistic message of change, and I hope that I'll be able to take that message to the country," Gove said. In unguarded comments earlier on Tuesday, caught on camera and broadcast by Sky News, former Conservative minister Ken Clarke made disparaging remarks about all three contenders, saying that with Gove as Prime Minister "we would go to war with at least three countries at once". He described May as "a bloody difficult woman", but no more difficult than Thatcher, in whose cabinet he served. He added that she was "good", but lacking in foreign policy experience. Of Leadsom, Clarke said: "She does have experience in the city...She is not one of the tiny band of lunatics who think we can have a sort of glorious economic future outside the (EU) single market. So long as she understands that she's not to deliver on some of the extremely stupid things she's been saying." (Reuters)

May leads three-horse PM race as Brexit hits Pound and property

Asian stocks rose today as risk appetite continued to recover from last week&#39;s Brexit shock, but the pound came under renewed pressure after the Bank of England&#39;s governor hinted at an interest rate cut ahead.&nbsp; 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent. 
 
The index has recovered nearly all the losses suffered last Friday when global markets plunged in response to Britain&#39;s decision to leave the European Union. 
 
It has gained close to 3.5 per cent since Friday&#39;s close on a combination of short-covering and relief that Brexit did not spark contagion in the global financial system like that which engulfed markets during the 2008-09 crisis. 
 
Japan&#39;s Nikkei rose 0.6 per cent after the yen surrendered more of the territory gained during the flight to quality seen earlier in the week. It is on track for a 4.8 per cent gain for the week.&nbsp; 
 
South Korea&#39;s Kospi extended gains to 0.8 per cent, set to end the week 3.2 per cent higher.&nbsp; 
 
China&#39;s CSI 300 and Shanghai Composite indexes advanced 0.4 per cent, and looked set for weekly gains of 2.9 per cent and 3 per cent respectively, after data showed growth in China&#39;s services sector accelerated in June, while the manufacturing sector stalled.&nbsp; 
 
&quot;Share markets rebounded over the past week as worries about Brexit leading to global financial and economic chaos faded somewhat,&quot; Shane Oliver, head of investment strategy at AMP Capital in Sydney, wrote in a note. 
 
&quot;The week ahead will no doubt see bouts of Brexit-related nervousness but it may continue to settle down in the absence of any new developments in Europe.&quot; 
 
The Dow Jones industrial average climbed 1.3 per cent on Thursday, posting its third straight day of gains and erasing a bulk of its losses after Brexit. 
 
Some of the overnight gains on Wall Street were attributed to hopes for more monetary easing after BOE governor Mark Carney said on Thursday the central bank would probably need to pump more stimulus into Britain`s economy over the summer in wake of the Brexit shock. 
 
A number of Asian central banks, including those in Japan and China, are also expected to ease policy further later this year, while a number of Asian governments have ramped up fiscal stimulus. 
 
Carney&#39;s comments forced the pound to head south on Thursday and cut short the currency&#39;s recovery from a 31-year low on Monday. 
 
Sterling last traded at $1.3346 after nearly touching $1.35 on Thursday. The pound, which lost almost 8 per cent soon after the Brexit vote, has declined a further 2.6 per cent since. It sank to $1.3122 on Monday, its lowest since 1985. 
 
&quot;Carney has always been nervous about how Brexit would impact the UK economy and now that it is a reality, he is preparing for the worst, agrees with the doom and gloom scenario and wants to assure the market that the BoE will be proactive,&quot; wrote Kathy Lien, managing director of FX strategy at BK Asset Management. 
 
Sterling&#39;s slide added mild pressure on the euro, which was steady at $1.1104 after slipping overnight from $1.1155, its highest in six days. It&#39;s poised to end the week flat. 
 
The dollar pulled back slightly against the safe-haven yen, but retained most of this week&#39;s gains. The greenback, which fell to 99.00 yen in the initial phases of the Brexit shock, was last trading at 102.88 yen, on track for a gain of 0.7 per cent for the week. 
 
In commodities, crude oil advanced on expectations of rate cuts and better demand-supply balance. 
 
US crude was up 0.4 per cent at $48.54 a barrel after shedding more than 3 per cent on Thursday, but remains poised for a 1.9 per cent loss for the week. 
 
Brent crude rose 0.5 per cent to $49.98, heading for a weekly gain of 3.2 per cent.&nbsp; 
 
But in a sign that risk appetite remains tentative, the safe-haven gold climbed 0.4 per cent to $1,327.31 an ounce, set to end the week 0.9 per cent higher, its fifth consecutive weekly gain.&nbsp; 
 
(Reuters)

In preparation to counter Brexit's negative impact, Bank of England's governor hinted at an interest rate cut

Asian stocks rose today as risk appetite continued to recover from last week's Brexit shock, but the pound came under renewed pressure after the Bank of England's governor hinted at an interest rate cut ahead. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent. The index has recovered nearly all the losses suffered last Friday when global markets plunged in response to Britain's decision to leave the European Union. It has gained close to 3.5 per cent since Friday's close on a combination of short-covering and relief that Brexit did not spark contagion in the global financial system like that which engulfed markets during the 2008-09 crisis. Japan's Nikkei rose 0.6 per cent after the yen surrendered more of the territory gained during the flight to quality seen earlier in the week. It is on track for a 4.8 per cent gain for the week. South Korea's Kospi extended gains to 0.8 per cent, set to end the week 3.2 per cent higher. China's CSI 300 and Shanghai Composite indexes advanced 0.4 per cent, and looked set for weekly gains of 2.9 per cent and 3 per cent respectively, after data showed growth in China's services sector accelerated in June, while the manufacturing sector stalled. "Share markets rebounded over the past week as worries about Brexit leading to global financial and economic chaos faded somewhat," Shane Oliver, head of investment strategy at AMP Capital in Sydney, wrote in a note. "The week ahead will no doubt see bouts of Brexit-related nervousness but it may continue to settle down in the absence of any new developments in Europe." The Dow Jones industrial average climbed 1.3 per cent on Thursday, posting its third straight day of gains and erasing a bulk of its losses after Brexit. Some of the overnight gains on Wall Street were attributed to hopes for more monetary easing after BOE governor Mark Carney said on Thursday the central bank would probably need to pump more stimulus into Britain`s economy over the summer in wake of the Brexit shock. A number of Asian central banks, including those in Japan and China, are also expected to ease policy further later this year, while a number of Asian governments have ramped up fiscal stimulus. Carney's comments forced the pound to head south on Thursday and cut short the currency's recovery from a 31-year low on Monday. Sterling last traded at $1.3346 after nearly touching $1.35 on Thursday. The pound, which lost almost 8 per cent soon after the Brexit vote, has declined a further 2.6 per cent since. It sank to $1.3122 on Monday, its lowest since 1985. "Carney has always been nervous about how Brexit would impact the UK economy and now that it is a reality, he is preparing for the worst, agrees with the doom and gloom scenario and wants to assure the market that the BoE will be proactive," wrote Kathy Lien, managing director of FX strategy at BK Asset Management. Sterling's slide added mild pressure on the euro, which was steady at $1.1104 after slipping overnight from $1.1155, its highest in six days. It's poised to end the week flat. The dollar pulled back slightly against the safe-haven yen, but retained most of this week's gains. The greenback, which fell to 99.00 yen in the initial phases of the Brexit shock, was last trading at 102.88 yen, on track for a gain of 0.7 per cent for the week. In commodities, crude oil advanced on expectations of rate cuts and better demand-supply balance. US crude was up 0.4 per cent at $48.54 a barrel after shedding more than 3 per cent on Thursday, but remains poised for a 1.9 per cent loss for the week. Brent crude rose 0.5 per cent to $49.98, heading for a weekly gain of 3.2 per cent. But in a sign that risk appetite remains tentative, the safe-haven gold climbed 0.4 per cent to $1,327.31 an ounce, set to end the week 0.9 per cent higher, its fifth consecutive weekly gain. (Reuters)

Asia stocks rise as risk appetite recovers, pound under fresh pressure

The pound was sitting at three-decade lows Monday morning as currency markets were left reeling from Britain`s shock decision to leave the European Union. 
 
Sterling collapsed to its lowest level since 1985 on Friday ahead of official referendum results as early numbers suggested that the vote would surprise markets, which had widely expected voters to opt for the status quo. 
 
On Monday morning in Tokyo, the pound was at $1.3379, off $1.3670 in New York but still above $1.3229, its lowest point earlier Friday. 
 
&quot;People are finding it difficult to comprehend what Brexit implies for the future -- we don`t know yet what the magnitude of the shock will be,&quot; Steven Barrow, head of Group-of-10 strategy at Standard Bank Group in London, told Bloomberg News. 
 
The euro bought 82.07 pence against 81.31 pence, while the dollar ticked up to 102.34 Yen, from 102.21 yen on Friday. 
 
Japan`s currency surged Friday as traders scooped up the safe-haven unit, seen as a safe bet in times of turmoil. 
 
But the rally in the Yen, which had already been on the upswing before the vote, poses a threat to profits at major Japanese exporters. 
 
And Britain`s vote to leave the EU could have significant consequences for more than 1,000 Japanese firms that operate in Britain -- many of which see it as a staging point for dealing in Europe. 
 
&quot;It was very regrettable,&quot; Sadayuki Sakakibara, chairman of Keidanren, Japan`s biggest business lobby, said of the result on Friday. 
 
Japanese Prime Minister Shinzo Abe held an emergency meeting with top officials Monday morning to discuss Brexit and how to deal with the market fallout. 
 
Ahead of the meeting, Abe pointed to unspecified measures to smooth out any impact on the world`s number three economy.&nbsp; 
 
&quot;We will make thorough efforts so that (Brexit) will not negatively affect Japan`s economy and the business of small to medium-sized firms,&quot; he said, without elaborating. 
 
On Friday, Finance Minister Taro Aso pledged that Tokyo was ready to adopt strong measures to address wild volatility on financial markets. 
 
His remarks hinted at a possible market intervention to cool the surging yen. 
 
Recently, Japanese officials, including Aso, have been warning over the Yen&#39;s rise and said an intervention was possible. However, such a move could put Japan on a collision course with its G20 counterparts, who have agreed to hold off stepping into forex markets to manipulate their currencies. 
 
Officials from the Bank of Japan (BoJ) were at the meeting on Monday. The BoJ has said it was ready to lean on a currency swap agreement it has with other major central banks to supply liquidity for markets in an effort to counter the wild volatility. 
 
(AFP)

Japanese Prime Minister Shinzo Abe held an emergency meeting with top officials Monday morning to review Brexit and the market fallout

The pound was sitting at three-decade lows Monday morning as currency markets were left reeling from Britain`s shock decision to leave the European Union. Sterling collapsed to its lowest level since 1985 on Friday ahead of official referendum results as early numbers suggested that the vote would surprise markets, which had widely expected voters to opt for the status quo. On Monday morning in Tokyo, the pound was at $1.3379, off $1.3670 in New York but still above $1.3229, its lowest point earlier Friday. "People are finding it difficult to comprehend what Brexit implies for the future -- we don`t know yet what the magnitude of the shock will be," Steven Barrow, head of Group-of-10 strategy at Standard Bank Group in London, told Bloomberg News. The euro bought 82.07 pence against 81.31 pence, while the dollar ticked up to 102.34 Yen, from 102.21 yen on Friday. Japan`s currency surged Friday as traders scooped up the safe-haven unit, seen as a safe bet in times of turmoil. But the rally in the Yen, which had already been on the upswing before the vote, poses a threat to profits at major Japanese exporters. And Britain`s vote to leave the EU could have significant consequences for more than 1,000 Japanese firms that operate in Britain -- many of which see it as a staging point for dealing in Europe. "It was very regrettable," Sadayuki Sakakibara, chairman of Keidanren, Japan`s biggest business lobby, said of the result on Friday. Japanese Prime Minister Shinzo Abe held an emergency meeting with top officials Monday morning to discuss Brexit and how to deal with the market fallout. Ahead of the meeting, Abe pointed to unspecified measures to smooth out any impact on the world`s number three economy. "We will make thorough efforts so that (Brexit) will not negatively affect Japan`s economy and the business of small to medium-sized firms," he said, without elaborating. On Friday, Finance Minister Taro Aso pledged that Tokyo was ready to adopt strong measures to address wild volatility on financial markets. His remarks hinted at a possible market intervention to cool the surging yen. Recently, Japanese officials, including Aso, have been warning over the Yen's rise and said an intervention was possible. However, such a move could put Japan on a collision course with its G20 counterparts, who have agreed to hold off stepping into forex markets to manipulate their currencies. Officials from the Bank of Japan (BoJ) were at the meeting on Monday. The BoJ has said it was ready to lean on a currency swap agreement it has with other major central banks to supply liquidity for markets in an effort to counter the wild volatility. (AFP)

Pound weak on post-Brexit fallout

World stocks headed for one of the biggest slumps on record on Friday, as a decision by Britain to leave the European Union triggered eight per cent falls for Europe&#39;s biggest bourses and a record plunge for Sterling. 
 
Such a body blow to global confidence could well prevent the Federal Reserve from raising interest rates as planned this year, and might even provoke a new round of emergency policy easing from all the major central banks. 
 
Risk assets were scorched as investors fled to the traditional safe-harbours of top-rated government debt, Japanese Yen and gold. 
 
Billions were wiped from share values as Europe saw London&#39;s FTSE drop six per cent in early deals, Germany&#39;s and France&#39;s CAC 40 slump 7.5 and nine per cent and Italian and Spanish markets plunge more than 11 per cent. 
 
Britain&#39;s big banks took a $130 billion battering with Lloyds and Barclays plunging as much as 30 per cent. EMINI S&amp;P 500 futures were down four per cent and Japan&#39;s Nikkei ended down 7.9 per cent. 
 
The British Pound collapsed no less than 18 US cents, easily the biggest fall in living memory, to hit its lowest since 1985. The Euro, in turn, slid 3.2 per cent to $1.1012 as investors feared for its very future. 
 
Having campaigned to keep the country in the EU, British Prime Minister David Cameron confirmed he would step down. 
 
Results showed a 51.9/48.1 per cent split for leaving, setting the UK on an uncertain path and dealing the largest setback to European efforts to forge greater unity since World War Two. 
 
Sterling sank a staggering 10 per cent at one point and was last at $1.3582, having carved out a range of $1.3228 to $1.5022. The fall was even larger than during the global financial crisis and the currency was moving two or three cents in the blink of an eye. 
 
&quot;It&#39;s an extraordinary move for financial markets and also for democracy,&quot; said co-head of portfolio investments of London-based currency specialist Millennium Global Richard Benson. 
 
&quot;The market is pricing interest rate cuts from the big central banks and we assume there will be a global liquidity add from them in the next few hours,&quot; he added. 
 
The shockwaves affected all asset classes and regions. 
 
The safe-haven Yen sprang higher to stand at 102.15 per Dollar, having been as low as 106.81 at one stage. The Dollar peak decline of four per cent was the largest since 1998. 
 
That prompted warnings from Japanese officials that excessive forex moves were undesirable. Indeed, traders were wary in case global central banks chose to step in to calm the volatility. 
 
The Bank of England said it would take all necessary steps to shield Britain&#39;s economy. A source told Reuters it was in touch with other major central banks. The Bank of Japan governor Haruhiko Kuroda added his bank was also ready to provide liquidity if needed to ensure market stability. 
 
Other currencies across Asia and in eastern Europe as it woke up suffered badly on worries that alarmed investors could pull funds out of emerging markets. Poland, where many of the eastern Europeans in Britain come from, saw its Zloty slump five per cent. 
 
Recession fears 
Europe&#39;s natural safety play, the 10-year German government bond, surged to send its yields tumbling back into negative territory and a new record low. 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan slid almost five per cent, while Shanghai stocks lost 1.1 per cent. 
 
Financial markets have been gripped for months by worries about what Brexit, or a British exit from the European Union, would mean for Europe&#39;s stability. 
 
&quot;Obviously, there will be large spill-over effects across all global economies if the &#39;Leave&#39; vote wins. Not only will the UK go into recession, Europe will follow suit,&quot; was the gloomy prediction of Matt Sherwood, head of investment strategy at fund manager Perpetual in Sydney. 
 
Investors duly stampeded to sovereign bonds, with US Treasury futures jumping over 2 points in an extremely rare move for Asian hours. 
 
Yields on the cash note fell 24 basis points to 1.49 per cent, the steepest one-day drop since 2009 and the lowest yield since 2012. 
 
As investors sought safer assets, the rally even extended to UK bonds, despite ratings agency Standard and Poor&#39;s warning it would likely downgrade the country&#39;s triple A rating if it left the EU. 
 
Yields on benchmark 10-year gilts fell 27 basis points to 1.108 per cent. 
 
Across the Atlantic, investors were pricing in even less chance of another hike in US interest rates given the Federal Reserve had cited a British exit from the EU as one reason to be cautious on tightening. 
 
&quot;It adds weight to the camp that the Fed would be on hold. A July (hike) is definitely off the table,&quot; Mike Baele, managing director with the private client reserve group at US Bank in Portland, Oregon. 
 
Fed funds futures were even toying with the chance that the next move could be a cut in US rates. 
 
Commodities likewise swung lower as a Brexit would be seen as a major threat to global growth. US crude shed $3.00 to $47.11 a barrel in erratic trade while Brent fell as much as six per cent to $47.83 before clawing back to $48.18. 
 
Industrial metal copper sank three per cent but gold galloped more than six per cent higher thanks to its perceived safe haven status. 
 
(Reuters)

The British Pound hits its lowest since 1985, the Euro slides 3.2 per cent while Sterling sinks by 10 per cent

World stocks headed for one of the biggest slumps on record on Friday, as a decision by Britain to leave the European Union triggered eight per cent falls for Europe's biggest bourses and a record plunge for Sterling. Such a body blow to global confidence could well prevent the Federal Reserve from raising interest rates as planned this year, and might even provoke a new round of emergency policy easing from all the major central banks. Risk assets were scorched as investors fled to the traditional safe-harbours of top-rated government debt, Japanese Yen and gold. Billions were wiped from share values as Europe saw London's FTSE drop six per cent in early deals, Germany's and France's CAC 40 slump 7.5 and nine per cent and Italian and Spanish markets plunge more than 11 per cent. Britain's big banks took a $130 billion battering with Lloyds and Barclays plunging as much as 30 per cent. EMINI S&P 500 futures were down four per cent and Japan's Nikkei ended down 7.9 per cent. The British Pound collapsed no less than 18 US cents, easily the biggest fall in living memory, to hit its lowest since 1985. The Euro, in turn, slid 3.2 per cent to $1.1012 as investors feared for its very future. Having campaigned to keep the country in the EU, British Prime Minister David Cameron confirmed he would step down. Results showed a 51.9/48.1 per cent split for leaving, setting the UK on an uncertain path and dealing the largest setback to European efforts to forge greater unity since World War Two. Sterling sank a staggering 10 per cent at one point and was last at $1.3582, having carved out a range of $1.3228 to $1.5022. The fall was even larger than during the global financial crisis and the currency was moving two or three cents in the blink of an eye. "It's an extraordinary move for financial markets and also for democracy," said co-head of portfolio investments of London-based currency specialist Millennium Global Richard Benson. "The market is pricing interest rate cuts from the big central banks and we assume there will be a global liquidity add from them in the next few hours," he added. The shockwaves affected all asset classes and regions. The safe-haven Yen sprang higher to stand at 102.15 per Dollar, having been as low as 106.81 at one stage. The Dollar peak decline of four per cent was the largest since 1998. That prompted warnings from Japanese officials that excessive forex moves were undesirable. Indeed, traders were wary in case global central banks chose to step in to calm the volatility. The Bank of England said it would take all necessary steps to shield Britain's economy. A source told Reuters it was in touch with other major central banks. The Bank of Japan governor Haruhiko Kuroda added his bank was also ready to provide liquidity if needed to ensure market stability. Other currencies across Asia and in eastern Europe as it woke up suffered badly on worries that alarmed investors could pull funds out of emerging markets. Poland, where many of the eastern Europeans in Britain come from, saw its Zloty slump five per cent. Recession fears Europe's natural safety play, the 10-year German government bond, surged to send its yields tumbling back into negative territory and a new record low. MSCI's broadest index of Asia-Pacific shares outside Japan slid almost five per cent, while Shanghai stocks lost 1.1 per cent. Financial markets have been gripped for months by worries about what Brexit, or a British exit from the European Union, would mean for Europe's stability. "Obviously, there will be large spill-over effects across all global economies if the 'Leave' vote wins. Not only will the UK go into recession, Europe will follow suit," was the gloomy prediction of Matt Sherwood, head of investment strategy at fund manager Perpetual in Sydney. Investors duly stampeded to sovereign bonds, with US Treasury futures jumping over 2 points in an extremely rare move for Asian hours. Yields on the cash note fell 24 basis points to 1.49 per cent, the steepest one-day drop since 2009 and the lowest yield since 2012. As investors sought safer assets, the rally even extended to UK bonds, despite ratings agency Standard and Poor's warning it would likely downgrade the country's triple A rating if it left the EU. Yields on benchmark 10-year gilts fell 27 basis points to 1.108 per cent. Across the Atlantic, investors were pricing in even less chance of another hike in US interest rates given the Federal Reserve had cited a British exit from the EU as one reason to be cautious on tightening. "It adds weight to the camp that the Fed would be on hold. A July (hike) is definitely off the table," Mike Baele, managing director with the private client reserve group at US Bank in Portland, Oregon. Fed funds futures were even toying with the chance that the next move could be a cut in US rates. Commodities likewise swung lower as a Brexit would be seen as a major threat to global growth. US crude shed $3.00 to $47.11 a barrel in erratic trade while Brent fell as much as six per cent to $47.83 before clawing back to $48.18. Industrial metal copper sank three per cent but gold galloped more than six per cent higher thanks to its perceived safe haven status. (Reuters)

World stocks in free fall as UK votes to exit EU

As initial results of Britain`s European Union membership referendum suggested the &lsquo;Leave&rsquo; vote performed better than expected, the pound dived in early Asian trading Friday tumbling from 2016 highs.&nbsp; 
 
Sterling briefly dived to just below $1.43 from above $1.50 -- its highest this year -- while it dropped to 79.17 pence to the euro, from around 76 pence earlier Friday. 
 
Britain`s currency seemingly did a U-turn as results from Sunderland in the northeast showed voters there had opted to leave the 28-member EU by a significant margin - 61 per cent against 39 per cent in favour of staying. 
 
Markets confident that Brexit could be averted 
Meanwhile, in neighbouring Newcastle-upon-Tyne, the margin of victory for the &lsquo;Remain&rsquo; camp was much smaller than expected, with just 50.7 percent of voters choosing to stay with the bloc. 
 
The result of the vote will not be known until around 0800 GMT Friday. However, markets had been growing increasingly confident that a so-called Brexit would be averted, although some analysts were concerned the markets could get it wrong.&nbsp; 
 
In response to the initial vote results, the yen surged nearly three percent on the dollar to just above 103, its highest levels since 2014, as traders flocked to safe-haven currencies. 
 
Notably, investors tend to buy the yen in times of uncertainty and turmoil. 
 
 
&lsquo;British exit could hammer world markets&rsquo; 
This week, European Commission President Jean-Claude Juncker and US Federal Reserve boss Janet Yellen were among the voices warning that a British exit could hammer world markets. 
 
&quot;The strong risk-on rally this week limits the upside from here on any `Remain` outcome and sets the scene for a much larger downward correction on a shock `Leave` outcome,&quot; said Jason Wong, a currency analyst at Bank of New Zealand. 
 
Over the past four days, financial markets had rallied as the pro-EU campaign recovered momentum, but the inital vote results underscored how tight the race might be. 
 
While some opinion polls before the vote showed the &#39;Leave&#39; side with the slimmest of leads, bookmakers were giving a more decisive edge to the &#39;Remain&#39; camp. 
 
(AFP)&nbsp;

But markets and bookmakers still say the Remain camp will win

As initial results of Britain`s European Union membership referendum suggested the ‘Leave’ vote performed better than expected, the pound dived in early Asian trading Friday tumbling from 2016 highs. Sterling briefly dived to just below $1.43 from above $1.50 -- its highest this year -- while it dropped to 79.17 pence to the euro, from around 76 pence earlier Friday. Britain`s currency seemingly did a U-turn as results from Sunderland in the northeast showed voters there had opted to leave the 28-member EU by a significant margin - 61 per cent against 39 per cent in favour of staying. Markets confident that Brexit could be averted Meanwhile, in neighbouring Newcastle-upon-Tyne, the margin of victory for the ‘Remain’ camp was much smaller than expected, with just 50.7 percent of voters choosing to stay with the bloc. The result of the vote will not be known until around 0800 GMT Friday. However, markets had been growing increasingly confident that a so-called Brexit would be averted, although some analysts were concerned the markets could get it wrong. In response to the initial vote results, the yen surged nearly three percent on the dollar to just above 103, its highest levels since 2014, as traders flocked to safe-haven currencies. Notably, investors tend to buy the yen in times of uncertainty and turmoil. ‘British exit could hammer world markets’ This week, European Commission President Jean-Claude Juncker and US Federal Reserve boss Janet Yellen were among the voices warning that a British exit could hammer world markets. "The strong risk-on rally this week limits the upside from here on any `Remain` outcome and sets the scene for a much larger downward correction on a shock `Leave` outcome," said Jason Wong, a currency analyst at Bank of New Zealand. Over the past four days, financial markets had rallied as the pro-EU campaign recovered momentum, but the inital vote results underscored how tight the race might be. While some opinion polls before the vote showed the 'Leave' side with the slimmest of leads, bookmakers were giving a more decisive edge to the 'Remain' camp. (AFP)

First Brexit results in: Leave performs better than expected, pound dives

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