FIFA World Cup 2022 is underway in Qatar. Fans are excited as their favourite teams lock horns in a thriller tournament. However, in disappointing news for English fans, Sterling leaves the England WC squad after an armed burglary at his London home.

Sterling leaves England WC squad after armed burglary at his London home

Sterling tumbled to a record trough as traders scampered for the exits on speculation that UK's new government's economic plan will stretch Britain's finances to the limit.

Sterling crumbles to record low; UK's fiscal plan spurs investor exodus

Asian shares rose to a three-month high on Monday, as risk assets got a fillip from hopes of a <a href="https://www.wionews.com/world/united-states-china-close-to-finalising-part-of-a-phase-one-trade-deal-report-258209">trade deal </a>and strong US&nbsp;corporate earnings, while major currencies marked time as focus shifted to a Federal Reserve rate decision.

European shares are expected to edge up, with pan-European Euro Stoxx 50 futures&nbsp;and German DAX futures&nbsp;traded up slightly ahead of European trade.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5 per cent&nbsp;for its third straight day of gains to the highest since late July.

Leading the gains were Chinese and Hong Kong shares. The CSI300&nbsp;of blue-chip mainland shares were up 0.6 per cent&nbsp;and Hong Kong's Hang Seng index&nbsp;jumped 1.0 per cent.

Japan's Nikkei&nbsp;was also upbeat, rising 0.3 per cent&nbsp;to a one-year high.

The gains came after a positive session in US&nbsp;and European markets on Friday.

US&nbsp;and Chinese officials are "close to finalising" some parts of a trade agreement after high-level telephone discussions on Friday, the US&nbsp;Trade Representative's office and China's Commerce Ministry said, with talks to continue.

US&nbsp;President Donald Trump has said he hopes to sign the deal with China's President Xi Jinping next month at a summit in Chile.

The protracted trade war between the world's largest economies has hurt manufacturing activity, exports and business confidence globally while denting profits of many major industrial firms.

"Up until now, uncertainties from the US-China trade have held companies from spending and hiring. But if they will come to a deal, that will mark a major turning point in economic sentiment," said Tatsushi Maeno, senior strategist at Okasan Asset Management in Tokyo.

Optimism that Beijing and Washington were finally close to resolving their dispute led the S&amp;P500&nbsp;to surpass its July 26 closing record of 3,025.86, though it ended a tad below that level on Friday. The S&amp;P 500's total return index&nbsp;posted an all-time high.

E-mini futures for the S&amp;P 500 started firm on Monday, up 0.15 per cent.

Strong results from companies including Intel&nbsp;also boosted sentiment in equities markets. More than 81 per cent&nbsp;of US&nbsp;companies have beaten Wall Street expectations so far this earnings season despite concerns about the trade war.

Investors next await earnings from the likes of Alphabet Inc, Apple, Facebook and Exxon.

Activity later in the week will be dominated by the US&nbsp;Federal Reserve, which markets expect is all but certain to lower interest rates at its Wednesday meeting.

The Bank of Japan meets on Thursday. On Friday, indicators for Chinese and US&nbsp;manufacturing will be released.

"The outcome of the FOMC policy meeting will most likely draw the largest market reaction," said Richard Grace, Sydney-based chief currency strategist at Commonwealth Bank.

"We also think the risk is the FOMC will articulate a pause," for future rate decisions, Grace added.

"That means the 27.6 per cent&nbsp;pricing for an additional 25 bps cut in December will quickly evaporate, sending US&nbsp;yields and the USD higher."

In currencies, the dollar index&nbsp;was flat at 97.817 against a basket of six major currencies. The Japanese yen was little changed at 108.73 to the dollar.

Sterling&nbsp;was last trading at $1.2822, a tad below Friday's close.

The European Union agreed to London's request for a<a href="https://www.wionews.com/videos/european-union-agrees-in-principle-to-extend-brexit-258217"> Brexit deadline extension</a> but set no new departure date. That gave Britain's divided parliament time to decide on Prime Minister Boris Johnson's call for a snap election.

Earlier, sources told Reuters the 27 European Union countries that will remain after Brexit hope to agree on Monday to delay Britain's divorce until Jan. 31 with an earlier departure possible.

The euro trod water too at $1.1083.

"It feels like the calm before a potential storm, where the event risk heats up with political twists and turns, key economic data and central bank meetings," said Chris Weston, Sydney-based strategist at Pepperstone.

Oil prices eased after strong gains last week.

US&nbsp;crude&nbsp;slipped 14 cents to $56.52 a barrel, while Brent&nbsp;edged down 12 cents to $61.90.

Spot gold&nbsp;quoted at $1,506.3 an ounce.

Asian shares rose to a three-month high on Monday, as risk assets got a fillip from hopes of a trade deal and strong US corporate earnings, while major currencies marked time as focus shifted to a Federal Reserve rate decision.

Asian shares rose to a three-month high on Monday, as risk assets got a fillip from hopes of a trade deal and strong US corporate earnings, while major currencies marked time as focus shifted to a Federal Reserve rate decision. European shares are expected to edge up, with pan-European Euro Stoxx 50 futures and German DAX futures traded up slightly ahead of European trade. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5 per cent for its third straight day of gains to the highest since late July. Leading the gains were Chinese and Hong Kong shares. The CSI300 of blue-chip mainland shares were up 0.6 per cent and Hong Kong's Hang Seng index jumped 1.0 per cent. Japan's Nikkei was also upbeat, rising 0.3 per cent to a one-year high. The gains came after a positive session in US and European markets on Friday. US and Chinese officials are "close to finalising" some parts of a trade agreement after high-level telephone discussions on Friday, the US Trade Representative's office and China's Commerce Ministry said, with talks to continue. US President Donald Trump has said he hopes to sign the deal with China's President Xi Jinping next month at a summit in Chile. The protracted trade war between the world's largest economies has hurt manufacturing activity, exports and business confidence globally while denting profits of many major industrial firms. "Up until now, uncertainties from the US-China trade have held companies from spending and hiring. But if they will come to a deal, that will mark a major turning point in economic sentiment," said Tatsushi Maeno, senior strategist at Okasan Asset Management in Tokyo. Optimism that Beijing and Washington were finally close to resolving their dispute led the S&P500 to surpass its July 26 closing record of 3,025.86, though it ended a tad below that level on Friday. The S&P 500's total return index posted an all-time high. E-mini futures for the S&P 500 started firm on Monday, up 0.15 per cent. Strong results from companies including Intel also boosted sentiment in equities markets. More than 81 per cent of US companies have beaten Wall Street expectations so far this earnings season despite concerns about the trade war. Investors next await earnings from the likes of Alphabet Inc, Apple, Facebook and Exxon. Activity later in the week will be dominated by the US Federal Reserve, which markets expect is all but certain to lower interest rates at its Wednesday meeting. The Bank of Japan meets on Thursday. On Friday, indicators for Chinese and US manufacturing will be released. "The outcome of the FOMC policy meeting will most likely draw the largest market reaction," said Richard Grace, Sydney-based chief currency strategist at Commonwealth Bank. "We also think the risk is the FOMC will articulate a pause," for future rate decisions, Grace added. "That means the 27.6 per cent pricing for an additional 25 bps cut in December will quickly evaporate, sending US yields and the USD higher." In currencies, the dollar index was flat at 97.817 against a basket of six major currencies. The Japanese yen was little changed at 108.73 to the dollar. Sterling was last trading at $1.2822, a tad below Friday's close. The European Union agreed to London's request for a Brexit deadline extension but set no new departure date. That gave Britain's divided parliament time to decide on Prime Minister Boris Johnson's call for a snap election. Earlier, sources told Reuters the 27 European Union countries that will remain after Brexit hope to agree on Monday to delay Britain's divorce until Jan. 31 with an earlier departure possible. The euro trod water too at $1.1083. "It feels like the calm before a potential storm, where the event risk heats up with political twists and turns, key economic data and central bank meetings," said Chris Weston, Sydney-based strategist at Pepperstone. Oil prices eased after strong gains last week. US crude slipped 14 cents to $56.52 a barrel, while Brent edged down 12 cents to $61.90. Spot gold quoted at $1,506.3 an ounce.

Asian shares climb to three-month high, currencies mark time

The British pound fell Tuesday awaiting key Brexit votes on Prime Minister Boris Johnson's<a href="https://www.wionews.com/world/british-prime-minister-boris-johnson-prepares-fresh-brexit-push-257303"> withdrawal agreement bill</a>.

Europe and Asian stock markets rose on growing expectations that China and the United States will sign a partial trade deal next month, dealers said.

Sterling fell further from Monday's five-month peaks, struck after parliament forced Johnson to request <a href="https://www.wionews.com/world/british-pm-boris-johnson-sends-unsigned-letter-seeking-brexit-delay-256989">another extension</a> to Britain's scheduled exit from the European Union.

The pound switched hands at $1.2936 Tuesday, down from $1.2960 late in New York on Monday.

Sterling had earlier Monday spiked $1.3013, the highest level since May.&nbsp;

Johnson published his hotly-awaited withdrawal agreement bill (WAB) late on Monday, with just over a week to go until Brexit on October 31.

"The Brexit saga rumbles on today as MPs debate and vote on the WAB in what is likely to be the first of a few excruciating and long sessions in parliament," said Oanda analyst Craig Erlam.

Johnson faces two crucial Brexit votes that could decide if he still has a reasonable shot at securing his EU divorce by next week's deadline.

Firstly, the Conservative leader hopes parliament gives initial support to a Brexit bill that translates the revised withdrawal agreement he struck with Brussels last week into UK law.

Secondly, he also hopes the lower House of Commons will vote in favour of a speedy timescale to pass the entire legislation in just three days.

The rapid timetable, a big ask for a 110-page text designed to unwind 46 years of intricate EU-UK ties,&nbsp;has sparked outcry from opposition lawmakers.

"The main events of the day will likely come this evening, after the stock market here in London has closed, with parliament set for two key votes on Brexit," said XTB analyst David Cheetham.

Even if the withdrawal bill "passes there’s a fair chance that a vote on the timetable shortly afterwards will fail.

"Several MPs have already voiced their displeasure at the lack of time to scrutinise the bill," he added.

At the same time, Johnson has been forced by parliament to request a three-month extension that <a href="https://www.wionews.com/videos/eu-considers-brexit-extension-boris-johnson-battles-to-save-deal-257370">European leaders will consider</a> once they get a clearer picture of this week's parliamentary votes.

Elsewhere Tuesday, global stock markets gained on modest gains on easing trade war concerns.

US President Donald Trump reinforced hopes Monday that he and Xi Jinping will be able to put pen to paper on a<a href="https://www.wionews.com/world/trump-says-phase-1-china-trade-pact-on-track-for-november-257404"> mini pact</a>, saying China had already started promised purchases of farm goods, and that the first part of a wider commitment was almost complete.

"We'll be able to, we think, sign a completed document with China on phase one," Trump said at the White House, adding they would then move on to the next phases.

Trade Representative Robert Lighthizer said efforts were being made for it to be ready when the leaders meet at the APEC summit next month in Chile.

Trump's economics adviser Larry Kudlow indicated tariffs planned to go into effect in December could be cancelled if the talks go well.

The British pound fell Tuesday awaiting key Brexit votes on Prime Minister Boris Johnson's withdrawal agreement bill. Europe and Asian stock markets rose on growing expectations that China and the United States will sign a partial trade deal next month, dealers said.

The British pound fell Tuesday awaiting key Brexit votes on Prime Minister Boris Johnson's withdrawal agreement bill. Europe and Asian stock markets rose on growing expectations that China and the United States will sign a partial trade deal next month, dealers said. Sterling fell further from Monday's five-month peaks, struck after parliament forced Johnson to request another extension to Britain's scheduled exit from the European Union. The pound switched hands at $1.2936 Tuesday, down from $1.2960 late in New York on Monday. Sterling had earlier Monday spiked $1.3013, the highest level since May. Johnson published his hotly-awaited withdrawal agreement bill (WAB) late on Monday, with just over a week to go until Brexit on October 31. "The Brexit saga rumbles on today as MPs debate and vote on the WAB in what is likely to be the first of a few excruciating and long sessions in parliament," said Oanda analyst Craig Erlam. Johnson faces two crucial Brexit votes that could decide if he still has a reasonable shot at securing his EU divorce by next week's deadline. Firstly, the Conservative leader hopes parliament gives initial support to a Brexit bill that translates the revised withdrawal agreement he struck with Brussels last week into UK law. Secondly, he also hopes the lower House of Commons will vote in favour of a speedy timescale to pass the entire legislation in just three days. The rapid timetable, a big ask for a 110-page text designed to unwind 46 years of intricate EU-UK ties, has sparked outcry from opposition lawmakers. "The main events of the day will likely come this evening, after the stock market here in London has closed, with parliament set for two key votes on Brexit," said XTB analyst David Cheetham. Even if the withdrawal bill "passes there’s a fair chance that a vote on the timetable shortly afterwards will fail. "Several MPs have already voiced their displeasure at the lack of time to scrutinise the bill," he added. At the same time, Johnson has been forced by parliament to request a three-month extension that European leaders will consider once they get a clearer picture of this week's parliamentary votes. Elsewhere Tuesday, global stock markets gained on modest gains on easing trade war concerns. US President Donald Trump reinforced hopes Monday that he and Xi Jinping will be able to put pen to paper on a mini pact, saying China had already started promised purchases of farm goods, and that the first part of a wider commitment was almost complete. "We'll be able to, we think, sign a completed document with China on phase one," Trump said at the White House, adding they would then move on to the next phases. Trade Representative Robert Lighthizer said efforts were being made for it to be ready when the leaders meet at the APEC summit next month in Chile. Trump's economics adviser Larry Kudlow indicated tariffs planned to go into effect in December could be cancelled if the talks go well.

British pound falls ahead of Brexit vote

Sterling fell on Monday after MPs voted to delay passing British Prime Minister Boris Johnson's Brexit deal, though losses were limited by hopes the country can eventually avoid crashing out of the EU without a divorce agreement in place.

The House of Commons sat on a Saturday for the first time in almost four decades to consider Johnson's deal in a vote that was seen as a potential turning point in the long-running Brexit saga.

But instead of delivering a verdict on the deal itself, lawmakers voted to force Johnson to ask the European Union for another Brexit delay, hoping to avoid crashing out of the bloc on October 31 with no agreement in place.

Johnson reluctantly agreed, although the EU is yet to respond to the request and Britain's conservative government insists it is still committed to exiting by the month's end.

The prime minister is hoping to bring the deal back to the House for a vote on Monday, but that might fall foul of parliamentary procedure, with Speaker John Bercow to rule on it later.

The pound -- which last week hit five-month highs on optimism for a deal — dropped against the dollar and the euro, but Stephen Innes, Asia-Pacific market strategist at AxiTrader, said: "The fact Sterling has proven surprisingly resilient... buttresses well for risk sentiment."

Saturday's vote meant more waiting for traders, Shinichiro Kadota, exchange strategist at Barclays Securities in Japan said.

"There had been hopes late last week that this issue would finally see a settlement. But now it's been shelved," he said.

"The pound rallied to close to $1.30 from $1.22... We can say it is holding firm, which shows hopes (for avoiding no-deal Brexit) have not been dashed."

'Substantial progress'

Rodrigo Catril, a senior forex strategist at National Australia Bank said the market was not in "wait-and-see mode".

"We saw the pound lose a little bit of ground, but from the perspective of what it's gained over the past week, that's really minimal," he told AFP.

Catril said it appeared a deal would be done before October 31 but a great deal of uncertainty remained, including the possibility of a "confirmatory vote", or second Brexit referendum.

Asian equity markets mostly rose but there was little major movement in reaction to China's top trade negotiator Liu He saying at the weekend that Beijing and Washington had made "substantial progress" towards wrapping up a partial trade deal announced earlier this month.

The deal offered China a temporary reprieve from tariffs planned for mid-October, while Beijing said it would hike purchases of US agricultural goods.

But it did not roll back any of the duties already imposed on hundreds of billions of dollars in exports to the US, nor address another round of levies due in December.

Still, the upbeat comments provided a boost to the yuan, which rose 0.2 percent against the dollar.

And Brett Ewing, chief market strategist at First Franklin Financial Services, told Bloomberg TV: "It would be significant if they can get a phase one deal signed before Thanksgiving -- the probability of that is probably a little bit over 60 percent right now.

"This is a very important issue, and I think it could remove a lot of uncertainty."

Hong Kong closed 0.1 percent up and Tokyo 0.3 percent higher, with Singapore climbing 0.8 percent and Seoul up 0.2 percent. Taipei and Jakarta also rose.

But Shanghai rose 0.1 percent, while Manila, Bangkok and Wellington were also in the red.

In early European trade London, Paris and Frankfurt were all down.

Key figures around

Pound/dollar: DOWN at $1.2920 from $1.2989 at 2100 GMT on Friday

Euro/pound: UP at 86.37 pence from 86.20 pence

Euro/dollar: DOWN at $1.1157 from $1.1174&nbsp;

Dollar/yen: UP at 108.53 yen from 108.35 yen

London - FTSE 100: DOWN 5.98 percent at 7,144.59

Tokyo - Nikkei 225: UP 0.3 percent at 22,548.90 (close)

Hong Kong - Hang Seng: UP 0.1 percent at 26,740.24 (close)

Shanghai - Composite: UP 0.1 percent at 2,939.62 (close)

West Texas Intermediate: DOWN 17 cents at $53.61 per barrel

Brent North Sea crude: DOWN 24 cents at $59.18 per barrel

New York - Dow: DOWN 1.0 percent at 26,770.20 (close)

Sterling fell on Monday after MPs voted to delay passing British Prime Minister Boris Johnson's Brexit deal, though losses were limited by hopes the country can eventually avoid crashing out of the EU without a divorce agreement in place.

Sterling fell on Monday after MPs voted to delay passing British Prime Minister Boris Johnson's Brexit deal, though losses were limited by hopes the country can eventually avoid crashing out of the EU without a divorce agreement in place. The House of Commons sat on a Saturday for the first time in almost four decades to consider Johnson's deal in a vote that was seen as a potential turning point in the long-running Brexit saga. But instead of delivering a verdict on the deal itself, lawmakers voted to force Johnson to ask the European Union for another Brexit delay, hoping to avoid crashing out of the bloc on October 31 with no agreement in place. Johnson reluctantly agreed, although the EU is yet to respond to the request and Britain's conservative government insists it is still committed to exiting by the month's end. The prime minister is hoping to bring the deal back to the House for a vote on Monday, but that might fall foul of parliamentary procedure, with Speaker John Bercow to rule on it later. The pound -- which last week hit five-month highs on optimism for a deal — dropped against the dollar and the euro, but Stephen Innes, Asia-Pacific market strategist at AxiTrader, said: "The fact Sterling has proven surprisingly resilient... buttresses well for risk sentiment." Saturday's vote meant more waiting for traders, Shinichiro Kadota, exchange strategist at Barclays Securities in Japan said. "There had been hopes late last week that this issue would finally see a settlement. But now it's been shelved," he said. "The pound rallied to close to $1.30 from $1.22... We can say it is holding firm, which shows hopes (for avoiding no-deal Brexit) have not been dashed." 'Substantial progress' Rodrigo Catril, a senior forex strategist at National Australia Bank said the market was not in "wait-and-see mode". "We saw the pound lose a little bit of ground, but from the perspective of what it's gained over the past week, that's really minimal," he told AFP. Catril said it appeared a deal would be done before October 31 but a great deal of uncertainty remained, including the possibility of a "confirmatory vote", or second Brexit referendum. Asian equity markets mostly rose but there was little major movement in reaction to China's top trade negotiator Liu He saying at the weekend that Beijing and Washington had made "substantial progress" towards wrapping up a partial trade deal announced earlier this month. The deal offered China a temporary reprieve from tariffs planned for mid-October, while Beijing said it would hike purchases of US agricultural goods. But it did not roll back any of the duties already imposed on hundreds of billions of dollars in exports to the US, nor address another round of levies due in December. Still, the upbeat comments provided a boost to the yuan, which rose 0.2 percent against the dollar. And Brett Ewing, chief market strategist at First Franklin Financial Services, told Bloomberg TV: "It would be significant if they can get a phase one deal signed before Thanksgiving -- the probability of that is probably a little bit over 60 percent right now. "This is a very important issue, and I think it could remove a lot of uncertainty." Hong Kong closed 0.1 percent up and Tokyo 0.3 percent higher, with Singapore climbing 0.8 percent and Seoul up 0.2 percent. Taipei and Jakarta also rose. But Shanghai rose 0.1 percent, while Manila, Bangkok and Wellington were also in the red. In early European trade London, Paris and Frankfurt were all down. Key figures around Pound/dollar: DOWN at $1.2920 from $1.2989 at 2100 GMT on Friday Euro/pound: UP at 86.37 pence from 86.20 pence Euro/dollar: DOWN at $1.1157 from $1.1174 Dollar/yen: UP at 108.53 yen from 108.35 yen London - FTSE 100: DOWN 5.98 percent at 7,144.59 Tokyo - Nikkei 225: UP 0.3 percent at 22,548.90 (close) Hong Kong - Hang Seng: UP 0.1 percent at 26,740.24 (close) Shanghai - Composite: UP 0.1 percent at 2,939.62 (close) West Texas Intermediate: DOWN 17 cents at $53.61 per barrel Brent North Sea crude: DOWN 24 cents at $59.18 per barrel New York - Dow: DOWN 1.0 percent at 26,770.20 (close)

Pound dips as Brexit saga drags but hopes for deal lend support

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

Pep Guardiola would love Raheem Sterling to reach the same level as Lionel Messi and Cristiano Ronaldo, but the Manchester City manager is not sure if any player will be able to equal the feats of that legendary pair.

Others have recently been comparing Sterling to the two dominant players of the last decade.

England manager Gareth Southgate suggested Sterling could eventually be mentioned in the same breath as Messi and Ronaldo when asked how far the City winger could go if he maintains his superb form.

Former Liverpool defender Jamie Carragher has also said that he sees Sterling as a potential future winner of the Ballon d'Or -- an award Barcelona star Messi and Juventus forward Ronaldo have each won five times.

City manager Guardiola is thrilled at Sterling's progress during their three years working together, but having also coached Messi at Barca, he knows the exceptional standards required at that exalted level.

"Right now, Raheem is not in that level, but maybe in the future I wish. It would be a dream for him and for all of us," Guardiola told reporters.

"The consistency of these two guys, they are legends, something unique in world football.

"If Raheem can target that level –- wow. We will be there to help him and of course he can do it.

"But right now, nobody, not in the club, or in all the clubs in the world&nbsp;can compare with these two guys and what they have done every single week for ten years. Nobody."

Sterling in electric form

Sterling enjoyed his best goal-scoring season last year as he netted 25 times to help City win the domestic treble of Premier League, FA Cup and League Cup.

He has started the new season in electric form with eight goals in seven games for club and country. He scored in both Euro 2020 qualifiers for England during the international break.

To understand what Sterling is up against, Ronaldo's mark of 29 club goals last season for Juventus is the lowest figure either he or Messi have recorded in the last decade.

As City prepare to resume their Premier League campaign, away to Norwich on Saturday, Guardiola has noticed how the 24-year-old is becoming much more clinical in front of goal -- as Sterling aims to improve on his best league tally of 18 from 2017-18.&nbsp;

"Before Raheem made good actions and dribbles, but he didn't finish too much. Now he is a player who can win games for himself," Guardiola said.

"It is a case of practice, practice, practice –- and mentality. The guy who scores goals is because he arrives in front of goal. If you are not there, it's impossible.

"In the beginning, he didn't get there. Now he is always there. I have the sense that he has the desire and commitment to score goals and that's why he scores more goals and has more assists."

Pep Guardiola would love Raheem Sterling to reach the same level as Lionel Messi and Cristiano Ronaldo, but the Manchester City manager is not sure if any player will be able to equal the feats of that legendary pair.

Pep Guardiola would love Raheem Sterling to reach the same level as Lionel Messi and Cristiano Ronaldo, but the Manchester City manager is not sure if any player will be able to equal the feats of that legendary pair. Others have recently been comparing Sterling to the two dominant players of the last decade. England manager Gareth Southgate suggested Sterling could eventually be mentioned in the same breath as Messi and Ronaldo when asked how far the City winger could go if he maintains his superb form. Former Liverpool defender Jamie Carragher has also said that he sees Sterling as a potential future winner of the Ballon d'Or -- an award Barcelona star Messi and Juventus forward Ronaldo have each won five times. City manager Guardiola is thrilled at Sterling's progress during their three years working together, but having also coached Messi at Barca, he knows the exceptional standards required at that exalted level. "Right now, Raheem is not in that level, but maybe in the future I wish. It would be a dream for him and for all of us," Guardiola told reporters. "The consistency of these two guys, they are legends, something unique in world football. "If Raheem can target that level –- wow. We will be there to help him and of course he can do it. "But right now, nobody, not in the club, or in all the clubs in the world can compare with these two guys and what they have done every single week for ten years. Nobody." Sterling in electric form Sterling enjoyed his best goal-scoring season last year as he netted 25 times to help City win the domestic treble of Premier League, FA Cup and League Cup. He has started the new season in electric form with eight goals in seven games for club and country. He scored in both Euro 2020 qualifiers for England during the international break. To understand what Sterling is up against, Ronaldo's mark of 29 club goals last season for Juventus is the lowest figure either he or Messi have recorded in the last decade. As City prepare to resume their Premier League campaign, away to Norwich on Saturday, Guardiola has noticed how the 24-year-old is becoming much more clinical in front of goal -- as Sterling aims to improve on his best league tally of 18 from 2017-18. "Before Raheem made good actions and dribbles, but he didn't finish too much. Now he is a player who can win games for himself," Guardiola said. "It is a case of practice, practice, practice –- and mentality. The guy who scores goals is because he arrives in front of goal. If you are not there, it's impossible. "In the beginning, he didn't get there. Now he is always there. I have the sense that he has the desire and commitment to score goals and that's why he scores more goals and has more assists."

Raheem Sterling not on same level as Lionel Messi, Cristiano Ronaldo, says Pep Guardiola

Prime Minister Boris Johnson promised on Tuesday to lead Britain out of the European Union on October 31 "no matter what" as <a href="https://www.wionews.com/business-economy/stormy-sterling-sinks-again-stocks-wilt-before-fed-239448">sterling tumbled</a> and Ireland warned that the bloc would not be renegotiating the thrice defeated divorce deal.

The British pound fell on Tuesday as investors bet Johnson's Brexit brinkmanship could trigger a messy divorce that would sow chaos through the world economy and financial markets.

Sterling crashed through trading barriers, falling to an intraday low of $1.2120 in shallower overnight Asian trade, the lowest since March 2017. The pound has lost 3.6 cents since Johnson was named Britain's new prime minister a week ago.

"The prime minister made clear that the UK will be leaving the EU on October 31, no matter what," Johnson's Downing Street office said in a statement about a phone call with Irish Prime Minister Leo Varadkar.

Johnson demanded again that one of the most hotly contested elements of the Brexit divorce agreement - the Irish border backstop - would have to be struck out if there was to be a deal.

"The prime minister made clear that the government will approach any negotiations which take place with determination and energy and in a spirit of friendship, and that his clear preference is to leave the EU with a deal, but it must be one that abolishes the backstop," Downing Street said.

The backstop is a provision in the deal that would require Britain to obey some EU rules if no other way can be found to keep the land border open between British-ruled Northern Ireland and EU member Ireland. Johnson rejects it as "undemocratic".

Ireland said the backstop was necessary because of the positions Britain had taken in earlier talks, and that the EU would not renegotiate the Withdrawal Agreement struck by former Prime Minister Theresa May.

"The Taoiseach explained that the EU was united in its view that the Withdrawal Agreement could not be reopened," the Irish government said.

"Alternative arrangements could replace the backstop in the future... but thus far satisfactory options have yet to be identified and demonstrated," the Irish government said.

Ever since the 2016 EU referendum, the pound has gyrated to the rhetoric of the Brexit divorce: after the result was announced, it had the biggest one-day fall since the era of free-floating exchange rates was introduced in the early 1970s.

Since the 2016 vote, sterling has now lost 28 cents. It was trading at $1.2177 at 1230 GMT. It also fell sharply against the euro and the Japanese yen.

"We see little chance of Brexit fears calming in the near-term, and if anything will likely escalate further as we head closer to the October 31st deadline," said Mohammed Kazmi, a portfolio manager at UBP which has $136 billion of assets under management.

Brexit Crisis

Sterling briefly shot as low as $1.1450 on October 7, 2016, during a so-called 'flash crash' in Asian trading that lasted only for a few minutes. But otherwise, the fall under Johnson has brought it close to the 32-year lows struck in late 2016 and early 2017.

On entering Downing Street on Wednesday, Johnson set up a showdown with the EU by vowing to negotiate a new deal and threatening that, if the bloc refused, he would take Britain out on October 31 without a deal to limit economic dislocation.

Irish government bond yield spreads over Germany hit their widest levels in over a month on Tuesday, as worries grow over the potential impact of a no-deal Brexit on Ireland.

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.

Supporters of Brexit say that while there would be some short-term difficulties, the disruption of a no-deal Brexit has been overplayed and that in the long-term, the United Kingdom would thrive if it left the European Union.

Johnson was expected to tell Welsh farmers on Tuesday they will get a better deal after Brexit, part of a countrywide tour to win support for his "do or die" pledge to leave the European Union by October 31.

Prime Minister Boris Johnson promised on Tuesday to lead Britain out of the European Union on October 31 "no matter what" as sterling tumbled and Ireland warned that the bloc would not be renegotiating the thrice defeated divorce deal.

Prime Minister Boris Johnson promised on Tuesday to lead Britain out of the European Union on October 31 "no matter what" as sterling tumbled and Ireland warned that the bloc would not be renegotiating the thrice defeated divorce deal. The British pound fell on Tuesday as investors bet Johnson's Brexit brinkmanship could trigger a messy divorce that would sow chaos through the world economy and financial markets. Sterling crashed through trading barriers, falling to an intraday low of $1.2120 in shallower overnight Asian trade, the lowest since March 2017. The pound has lost 3.6 cents since Johnson was named Britain's new prime minister a week ago. "The prime minister made clear that the UK will be leaving the EU on October 31, no matter what," Johnson's Downing Street office said in a statement about a phone call with Irish Prime Minister Leo Varadkar. Johnson demanded again that one of the most hotly contested elements of the Brexit divorce agreement - the Irish border backstop - would have to be struck out if there was to be a deal. "The prime minister made clear that the government will approach any negotiations which take place with determination and energy and in a spirit of friendship, and that his clear preference is to leave the EU with a deal, but it must be one that abolishes the backstop," Downing Street said. The backstop is a provision in the deal that would require Britain to obey some EU rules if no other way can be found to keep the land border open between British-ruled Northern Ireland and EU member Ireland. Johnson rejects it as "undemocratic". Ireland said the backstop was necessary because of the positions Britain had taken in earlier talks, and that the EU would not renegotiate the Withdrawal Agreement struck by former Prime Minister Theresa May. "The Taoiseach explained that the EU was united in its view that the Withdrawal Agreement could not be reopened," the Irish government said. "Alternative arrangements could replace the backstop in the future... but thus far satisfactory options have yet to be identified and demonstrated," the Irish government said. Ever since the 2016 EU referendum, the pound has gyrated to the rhetoric of the Brexit divorce: after the result was announced, it had the biggest one-day fall since the era of free-floating exchange rates was introduced in the early 1970s. Since the 2016 vote, sterling has now lost 28 cents. It was trading at $1.2177 at 1230 GMT. It also fell sharply against the euro and the Japanese yen. "We see little chance of Brexit fears calming in the near-term, and if anything will likely escalate further as we head closer to the October 31st deadline," said Mohammed Kazmi, a portfolio manager at UBP which has $136 billion of assets under management. Brexit Crisis Sterling briefly shot as low as $1.1450 on October 7, 2016, during a so-called 'flash crash' in Asian trading that lasted only for a few minutes. But otherwise, the fall under Johnson has brought it close to the 32-year lows struck in late 2016 and early 2017. On entering Downing Street on Wednesday, Johnson set up a showdown with the EU by vowing to negotiate a new deal and threatening that, if the bloc refused, he would take Britain out on October 31 without a deal to limit economic dislocation. Irish government bond yield spreads over Germany hit their widest levels in over a month on Tuesday, as worries grow over the potential impact of a no-deal Brexit on Ireland. 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. Supporters of Brexit say that while there would be some short-term difficulties, the disruption of a no-deal Brexit has been overplayed and that in the long-term, the United Kingdom would thrive if it left the European Union. Johnson was expected to tell Welsh farmers on Tuesday they will get a better deal after Brexit, part of a countrywide tour to win support for his "do or die" pledge to leave the European Union by October 31.

Brexit 'no matter what', Prime Minister Johnson promises as sterling falls

Brewing <a href="https://www.wionews.com/business-economy/asia-stocks-higher-ahead-of-fed-pound-pressured-by-fresh-brexit-pain-239341">no-deal Brexit</a> worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock markets wilted before what is expected to be the first cut in rates since the financial crisis.

Europe's markets suffered a stormy start as the pound followed its worst day of the year with another 0.5% swoon against all the major currencies.

A blizzard of fiery talk on Monday that included the new UK Prime Minister Boris Johnson called his predecessor's Brexit plans dead and its new foreign minister labelling the European Union "stubborn" kept the slide intact.

<a href="https://www.wionews.com/world/uk-plays-brexit-hardball-with-stubborn-european-union-pound-falls-to-a-two-year-low-239235">Sterling fell</a> as far as $1.2120, which was its lowest against the dollar since March 2017, and to 91.85 pence per euro, the weakest since September 2017.

Options markets were pointing to more pain too. Three-month implied volatility, a contract that expires just before the October&nbsp;31 Brexit deadline, jumped to over 11 vols, the highest since before March 29, the original date for Britain to leave the European Union.

"The pound is in a very precarious state, it is as simple as that," said TD Securities' European head of currency strategy Ned Rumpeltin.

"We are now in a different regime," he said, referring to Johnson's explicit agenda of taking Britain out of the EU, whether or not transitional trading agreements are in place.

It was not just sterling reeling either.

Irish government bond yield spreads over Germany hit their widest levels in over a month at 24 basis points, on worries about the damage a no-deal Brexit would do to Ireland's economy.

Other eurozone government bond yields were holding near recent lows ahead of the Federal Reserve meeting which is expected to deliver a 25 basis point rate cut on Wednesday and potentially signal more on the way.

Germany's 10-year government bond yield was hovering near the minus 0.40% mark.

European shares slipped as grim forecasts from German chemicals and drugs giant Bayer and airline Lufthansa soured sentiment, although the weakness of the pound kept London's blue-chip FTSE index just about out of the red.

With concerns about global growth still bubbling among investors, a GfK survey also showed German consumer morale worsening for the third month in a row heading into August as trade disputes bit in Europe's biggest exporter.

"Most markets are down this morning," said Simona Gambarini, a markets economist at Capital Economics. "The S&amp;P closed lower yesterday. We have a few data releases regarding the eurozone that could push equity prices down but I think everyone is waiting for the Fed meeting."

Aussie Gold

Asia had been a bit more positive overnight.

Japan's Nikkei rose 0.4%, showing a limited reaction to the Bank of Japan's widely anticipated decision to stand pat on monetary policy. Shanghai rose 0.3% and Hong Kong's Hang Seng edged up 0.2%.

Australian stocks stole the glory again though with another record high, as buoyant mining shares added to tech-driven gains the previous day.

The BOJ added that it would ease policy again "without hesitation" if the economy loses momentum for achieving the central bank's 2% inflation target.

Also drawing some attention were US-China trade negotiations which begin in Shanghai on Tuesday, although expectations for progress during the two-day meeting are low with the markets hoping the two sides can at least detail commitments for "goodwill" gestures.

Among commodities, crude oil prices extended the previous day's gains, with the Fed's expected easing fuelling optimism that it would boost the economy and fuel demand in the world's biggest oil consumer.

US crude futures were up 0.65% at $57.24 per barrel and Brent crude added 0.6% to $64.09. Gold was down 0.1% at $1,425 per ounce.

Brewing no-deal Brexit worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock markets wilted before what is expected to be the first cut in rates since the financial crisis.

Brewing no-deal Brexit worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock markets wilted before what is expected to be the first cut in rates since the financial crisis. Europe's markets suffered a stormy start as the pound followed its worst day of the year with another 0.5% swoon against all the major currencies. A blizzard of fiery talk on Monday that included the new UK Prime Minister Boris Johnson called his predecessor's Brexit plans dead and its new foreign minister labelling the European Union "stubborn" kept the slide intact. Sterling fell as far as $1.2120, which was its lowest against the dollar since March 2017, and to 91.85 pence per euro, the weakest since September 2017. Options markets were pointing to more pain too. Three-month implied volatility, a contract that expires just before the October 31 Brexit deadline, jumped to over 11 vols, the highest since before March 29, the original date for Britain to leave the European Union. "The pound is in a very precarious state, it is as simple as that," said TD Securities' European head of currency strategy Ned Rumpeltin. "We are now in a different regime," he said, referring to Johnson's explicit agenda of taking Britain out of the EU, whether or not transitional trading agreements are in place. It was not just sterling reeling either. Irish government bond yield spreads over Germany hit their widest levels in over a month at 24 basis points, on worries about the damage a no-deal Brexit would do to Ireland's economy. Other eurozone government bond yields were holding near recent lows ahead of the Federal Reserve meeting which is expected to deliver a 25 basis point rate cut on Wednesday and potentially signal more on the way. Germany's 10-year government bond yield was hovering near the minus 0.40% mark. European shares slipped as grim forecasts from German chemicals and drugs giant Bayer and airline Lufthansa soured sentiment, although the weakness of the pound kept London's blue-chip FTSE index just about out of the red. With concerns about global growth still bubbling among investors, a GfK survey also showed German consumer morale worsening for the third month in a row heading into August as trade disputes bit in Europe's biggest exporter. "Most markets are down this morning," said Simona Gambarini, a markets economist at Capital Economics. "The S&P closed lower yesterday. We have a few data releases regarding the eurozone that could push equity prices down but I think everyone is waiting for the Fed meeting." Aussie Gold Asia had been a bit more positive overnight. Japan's Nikkei rose 0.4%, showing a limited reaction to the Bank of Japan's widely anticipated decision to stand pat on monetary policy. Shanghai rose 0.3% and Hong Kong's Hang Seng edged up 0.2%. Australian stocks stole the glory again though with another record high, as buoyant mining shares added to tech-driven gains the previous day. The BOJ added that it would ease policy again "without hesitation" if the economy loses momentum for achieving the central bank's 2% inflation target. Also drawing some attention were US-China trade negotiations which begin in Shanghai on Tuesday, although expectations for progress during the two-day meeting are low with the markets hoping the two sides can at least detail commitments for "goodwill" gestures. Among commodities, crude oil prices extended the previous day's gains, with the Fed's expected easing fuelling optimism that it would boost the economy and fuel demand in the world's biggest oil consumer. US crude futures were up 0.65% at $57.24 per barrel and Brent crude added 0.6% to $64.09. Gold was down 0.1% at $1,425 per ounce.

Stormy sterling sinks again, stocks wilt before Fed

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

Raheem Sterling says Manchester City are motivated by the pursuit of silverware rather than the promise of breaking more records as the Premier League leaders chase another landmark at Crystal Palace this weekend.

Pep Guardiola&#39;s side have already turned the title race into a lengthy coronation party after winning 18th successive league matches to open up a 15-point lead over second placed Manchester United.

A slew of statistical milestones have littered red-hot City&#39;s incredible run and they can finish 2017 by claiming another notable feat.

Just hours before the New Year&#39;s Eve fireworks begin to light up the night sky&nbsp;on Sunday, unbeaten City will be at Selhurst Park looking for a record-equalling 19th consecutive league victory.

The only club in Europe&#39;s five biggest leagues to have had a winning run that long is Bayern Munich under Guardiola in 2013-14.

But, while the historic sub-plots are a welcome bonus, City winger Sterling insists it is the thought of moving another step closer to the Premier League trophy that inspires his side.

&quot;I don&#39;t think everyone is really too focused on records. The most important thing is the three points,&quot; said Sterling, who scored City&#39;s winner at Newcastle&nbsp;on Wednesday.

&quot;Once you win the game and the stats come up, that&#39;s all well and great, but you can&#39;t be thinking about that.

&quot;We&#39;ve just got to have a single focus. At the end of the day, if it happens, it happens, but we need to go there with the mentality to get the job done.&quot;

United&#39;s failure to keep pace with City has sent Jose Mourinho into a grumpy mood, with the Old Trafford chief blasting his players after their recent draw at Leicester and demanding his employers back his plan for substantial investment in new signings.

A 2-2 home draw with Burnley&nbsp;on Tuesday&nbsp;did little to lift Mourinho&#39;s spirits, but it would have been even worse but for Jesse Lingard&#39;s brace as United recovered from two goals down.

Mourinho&#39;s side are without a win in three matches in all competitions, but Lingard claims their recovery against Burnley proves the spirit is still strong ahead of&nbsp;Saturday&#39;s&nbsp;clash with Southampton.

&quot;If we had played for another five or 10 minutes, we would have won the game,&quot; said.

&quot;We always have that fighting spirit, that never-give-up attitude and we&#39;ll see where it gets us.&quot;

Van Dijk boost

Fourth-placed Liverpool host Leicester in their first match since Reds boss Jurgen Klopp paid a world record &pound;75 million ($100 million) for a defender to land Southampton centre-back Virgil van Dijk.

Although Van Dijk can&#39;t officially join Liverpool until&nbsp;January 1, the Dutch star&#39;s arrival is a significant statement of intent by Klopp, who hopes fixing his leaky defence will help the team&#39;s push for a top-four finish.

Amid criticism of the hefty fee, Klopp was asked what the 26-year-old will add to Liverpool.

&quot;Quality. That&#39;s why we got him. We don&#39;t make the prices, the market does. Liverpool supporters should forget about the price,&quot; he said.

Champions Chelsea, who meet Stoke&nbsp;on Saturday, are a whopping 16 points behind City in third place.

Yet defiant Blues defender Cesar Azpilicueta says they will keep chasing the leaders until it&#39;s impossible to catch them.

&quot;Apart for Manchester City, every team is having problems. We need to fight and to keep pushing,&quot; he said.

&quot;We have another game against Stoke, our last game of the year, and it&#39;s important to keep winning. We must try to go as far as we can.&quot;

New Swansea manager Carlos Carvalhal will take charge of the league&#39;s bottom club for the first time at Watford.

Carvalhal was appointed as successor to the sacked Paul Clement just days after being dismissed by second tier Sheffield&nbsp;Wednesday.

&quot;We felt we needed to get the managerial situation resolved as soon as possible and while the timing is not always perfect, we can look forward to the second half of the campaign with renewed optimism,&quot; Swansea chairman Huw Jenkins said in reply to criticism of Carvalhal&#39;s surprise appointment.

&nbsp;

&nbsp;

Pep Guardiola's side have already turned the title race into a lengthy coronation party after winning 18th successive league matches to open up a 15-point lead over second placed Manchester United

Raheem Sterling says Manchester City are motivated by the pursuit of silverware rather than the promise of breaking more records as the Premier League leaders chase another landmark at Crystal Palace this weekend. Pep Guardiola's side have already turned the title race into a lengthy coronation party after winning 18th successive league matches to open up a 15-point lead over second placed Manchester United. A slew of statistical milestones have littered red-hot City's incredible run and they can finish 2017 by claiming another notable feat. Just hours before the New Year's Eve fireworks begin to light up the night sky on Sunday, unbeaten City will be at Selhurst Park looking for a record-equalling 19th consecutive league victory. The only club in Europe's five biggest leagues to have had a winning run that long is Bayern Munich under Guardiola in 2013-14. But, while the historic sub-plots are a welcome bonus, City winger Sterling insists it is the thought of moving another step closer to the Premier League trophy that inspires his side. "I don't think everyone is really too focused on records. The most important thing is the three points," said Sterling, who scored City's winner at Newcastle on Wednesday. "Once you win the game and the stats come up, that's all well and great, but you can't be thinking about that. "We've just got to have a single focus. At the end of the day, if it happens, it happens, but we need to go there with the mentality to get the job done." United's failure to keep pace with City has sent Jose Mourinho into a grumpy mood, with the Old Trafford chief blasting his players after their recent draw at Leicester and demanding his employers back his plan for substantial investment in new signings. A 2-2 home draw with Burnley on Tuesday did little to lift Mourinho's spirits, but it would have been even worse but for Jesse Lingard's brace as United recovered from two goals down. Mourinho's side are without a win in three matches in all competitions, but Lingard claims their recovery against Burnley proves the spirit is still strong ahead of Saturday's clash with Southampton. "If we had played for another five or 10 minutes, we would have won the game," said. "We always have that fighting spirit, that never-give-up attitude and we'll see where it gets us." Van Dijk boost Fourth-placed Liverpool host Leicester in their first match since Reds boss Jurgen Klopp paid a world record £75 million ($100 million) for a defender to land Southampton centre-back Virgil van Dijk. Although Van Dijk can't officially join Liverpool until January 1, the Dutch star's arrival is a significant statement of intent by Klopp, who hopes fixing his leaky defence will help the team's push for a top-four finish. Amid criticism of the hefty fee, Klopp was asked what the 26-year-old will add to Liverpool. "Quality. That's why we got him. We don't make the prices, the market does. Liverpool supporters should forget about the price," he said. Champions Chelsea, who meet Stoke on Saturday, are a whopping 16 points behind City in third place. Yet defiant Blues defender Cesar Azpilicueta says they will keep chasing the leaders until it's impossible to catch them. "Apart for Manchester City, every team is having problems. We need to fight and to keep pushing," he said. "We have another game against Stoke, our last game of the year, and it's important to keep winning. We must try to go as far as we can." New Swansea manager Carlos Carvalhal will take charge of the league's bottom club for the first time at Watford. Carvalhal was appointed as successor to the sacked Paul Clement just days after being dismissed by second tier Sheffield Wednesday. "We felt we needed to get the managerial situation resolved as soon as possible and while the timing is not always perfect, we can look forward to the second half of the campaign with renewed optimism," Swansea chairman Huw Jenkins said in reply to criticism of Carvalhal's surprise appointment.

City want trophies not records, says Sterling

Sterling surged by as much as 1.3 per cent against the dollar on Tuesday to hit its highest levels since mid-December, after British Prime Minister Theresa May surprised markets by calling an early parliamentary election for June.

The FTSE 100 suffered worst day since Brexit vote.&nbsp;The blue chip index ended the day down 2.46pc, a loss of 180.09 points, at 7,147.50. It marked its worst day since June 27 when the index plunged 2.55pc in the wake of the EU referendum.&nbsp;

Sterling jumped to as high as $1.2730, its strongest since Dec 14. It was on track for its biggest one-day rise since January.

Deutsche Bank, one the world&#39;s biggest sterling bears, said May&#39;s call for a general election was a &quot;game-changer&quot; for the currency, and that it would raise its forecasts for the pound in the coming days.

Analysts at the bank and elsewhere said May&#39;s move should result in a larger and more stable majority in parliament, thereby reducing the likelihood of a so-called &quot;hard Brexit&quot;.

On a trade-weighted basis, sterling jumped 1 per cent to a four-month high of 78.8.

(Reuters)

Sterling jumped to as high as $1.2730, its strongest since December 14

Sterling surged by as much as 1.3 per cent against the dollar on Tuesday to hit its highest levels since mid-December, after British Prime Minister Theresa May surprised markets by calling an early parliamentary election for June. The FTSE 100 suffered worst day since Brexit vote. The blue chip index ended the day down 2.46pc, a loss of 180.09 points, at 7,147.50. It marked its worst day since June 27 when the index plunged 2.55pc in the wake of the EU referendum. Sterling jumped to as high as $1.2730, its strongest since Dec 14. It was on track for its biggest one-day rise since January. Deutsche Bank, one the world's biggest sterling bears, said May's call for a general election was a "game-changer" for the currency, and that it would raise its forecasts for the pound in the coming days. Analysts at the bank and elsewhere said May's move should result in a larger and more stable majority in parliament, thereby reducing the likelihood of a so-called "hard Brexit". On a trade-weighted basis, sterling jumped 1 per cent to a four-month high of 78.8. (Reuters)

Sterling soars to highest since December after PM May calls early UK election

Turmoil unleashed by Britain&#39;s vote to leave the EU engulfed the opposition Labour Party, while policymakers as far away as China, Japan and South Korea fretted today over the threat to global financial stability, hours before markets reopen. 
 
In the oldest parliamentary democracy, three million Britons have signed a petition calling for a re-run of Thursday&#39;s referendum that split the nation, and one opinion poll showed a strong majority of Scots now want to break with the United Kingdom rather than with the European Union. 
 
Labour&#39;s left-wing leader Jeremy Corbyn sacked his foreign policy chief as the party plunged into open conflict. 
 
His health chief responded by resigning, calling for a new leader and reflecting accusations among pro-EU lawmakers that Corbyn&#39;s failure to win over traditional Labour voters had played a major role in the referendum result. 
 
Sacked foreign affairs spokesman Hilary Benn also called for Corbyn, who was elected last year largely by Left-wing party members and supporters, to go. &quot;He is a good and decent man but he is not a leader,&quot; Benn told BBC television. 
 
The 52-48 per cent referendum vote marked the biggest blow since World War II to the European project of forging greater unity across the continent. 
 
Sterling fell as much as 10 per cent against the Dollar on Friday to levels last seen in 1985, while world stocks saw more than $2 trillion wiped off their value. The weekend gave some respite from the turmoil, but with markets opening shortly in Asia, anxiety is growing. 
 
Prime Minister David Cameron resigned on Friday after Britons ignored his passionate appeals to stay in the EU, but left formally notifying Brussels of Britain&#39;s exit to his successor, who is unlikely to be in office for about three months. That signals a long period of limbo. 
 
Chinese Finance Minister Lou Jiwei said the vote &quot;will cast a shadow over the global economy&quot;. 
 
&quot;It&#39;s difficult to predict now,&quot; he said at the first annual meeting of the Asian Infrastructure Investment Bank in Beijing. &quot;The knee-jerk reaction from the market is probably a bit excessive and needs to calm down and take an objective view.&quot; 
 
Japan likewise fretted over the effect on the global currency market and contemplated official action. &quot;Speculative, violent moves have extremely negative effects,&quot; said Tomomi Inada, policy chief of the ruling LDP party. &quot;If necessary, the government should not hesitate to respond, including currency intervention,&quot; Nikkei daily quoted him as saying. 
 
Prime Minister Shinzo Abe has tried to engineer a weaker Yen to encourage exports to help revive the Japanese economy. But after initial success, investors have sought safety in the Yen this year due to stock market turmoil and now the Brexit vote, pushing the currency back up. 
 
No respite 
 
South Korea&#39;s finance minister also said he feared international markets will remain volatile throughout negotiations on the British exit. 
 
The United States, which during campaigning made clear it wanted Britain to stay in the EU, also showed signs of unease. 
 
Secretary of state John Kerry will meet EU foreign policy chief Frederica Mogherini in Brussels and British Foreign Minister Philip Hammond in London on Monday. 
 
The visit is largely meant to offer symbolic reassurance at a critical juncture for Europe, but a senior US official said Kerry would also stress the importance of other members not following Britain&#39;s lead and further weakening the EU. 
 
Despite the international expressions of concern, respite from the uncertainty is unlikely for months, at the very least. 
 
Cameron has offered to stay on as a caretaker, but he has refused to invoke Article 50 of the EU&#39;s Lisbon Treaty, which allows for two years of exit negotiations. Instead he left that job to his successor, who is due to be elected by his Conservative Party sometime before its annual conference in October. 
 
Only after the new leader has invoked can work on thrashing out Britain&#39;s new relationship with the bloc begin. The man widely tipped as the next prime minister is former London mayor Boris Johnson, the most prominent member of the campaign to leave the EU. 
 
No lying down 
 
Signs are growing that not all the 16 million Britons who voted to stay in the EU are willing to take the result lying down. Many flocked to back an online petition demanding a second vote, with signatures exceeding three million today morning, more than double the figure the previous afternoon. 
 
The petition, posted on Parliament&#39;s website before the referendum, said there should be another vote if the outcome was close on a turnout of less than 75 per cent - three points above Thursday&#39;s figure. 
 
It will have to be considered for debate by lawmakers, but has no legal force and its backers compare with the 17.4 million who voted &quot;leave&quot;. 
 
The referendum has also re-energised support for Scotland, which voted overwhelmingly to remain in the EU, to break away from the United Kingdom instead. 
 
An opinion poll in The Sunday Post said 59 per cent of respondents backed independence, rocketing from 45 per cent of votes cast in a referendum in 2014. 
 
Scottish first minister Nicola Sturgeon has said a fresh independence referendum is possible 
 
&quot;My challenge now as first minister is to work out how I best protect Scotland&#39;s interests, how I try to prevent us being taken out of the EU against our will with all of the deeply damaging and painful consequences that that will entail,&quot; she told the BBC&#39;s Andrew Marr show.&nbsp; 
 
(Reuters)

The 52-48% referendum vote marked the biggest blow since World War II to the European project forging unity across the continent

Turmoil unleashed by Britain's vote to leave the EU engulfed the opposition Labour Party, while policymakers as far away as China, Japan and South Korea fretted today over the threat to global financial stability, hours before markets reopen. In the oldest parliamentary democracy, three million Britons have signed a petition calling for a re-run of Thursday's referendum that split the nation, and one opinion poll showed a strong majority of Scots now want to break with the United Kingdom rather than with the European Union. Labour's left-wing leader Jeremy Corbyn sacked his foreign policy chief as the party plunged into open conflict. His health chief responded by resigning, calling for a new leader and reflecting accusations among pro-EU lawmakers that Corbyn's failure to win over traditional Labour voters had played a major role in the referendum result. Sacked foreign affairs spokesman Hilary Benn also called for Corbyn, who was elected last year largely by Left-wing party members and supporters, to go. "He is a good and decent man but he is not a leader," Benn told BBC television. The 52-48 per cent referendum vote marked the biggest blow since World War II to the European project of forging greater unity across the continent. Sterling fell as much as 10 per cent against the Dollar on Friday to levels last seen in 1985, while world stocks saw more than $2 trillion wiped off their value. The weekend gave some respite from the turmoil, but with markets opening shortly in Asia, anxiety is growing. Prime Minister David Cameron resigned on Friday after Britons ignored his passionate appeals to stay in the EU, but left formally notifying Brussels of Britain's exit to his successor, who is unlikely to be in office for about three months. That signals a long period of limbo. Chinese Finance Minister Lou Jiwei said the vote "will cast a shadow over the global economy". "It's difficult to predict now," he said at the first annual meeting of the Asian Infrastructure Investment Bank in Beijing. "The knee-jerk reaction from the market is probably a bit excessive and needs to calm down and take an objective view." Japan likewise fretted over the effect on the global currency market and contemplated official action. "Speculative, violent moves have extremely negative effects," said Tomomi Inada, policy chief of the ruling LDP party. "If necessary, the government should not hesitate to respond, including currency intervention," Nikkei daily quoted him as saying. Prime Minister Shinzo Abe has tried to engineer a weaker Yen to encourage exports to help revive the Japanese economy. But after initial success, investors have sought safety in the Yen this year due to stock market turmoil and now the Brexit vote, pushing the currency back up. No respite South Korea's finance minister also said he feared international markets will remain volatile throughout negotiations on the British exit. The United States, which during campaigning made clear it wanted Britain to stay in the EU, also showed signs of unease. Secretary of state John Kerry will meet EU foreign policy chief Frederica Mogherini in Brussels and British Foreign Minister Philip Hammond in London on Monday. The visit is largely meant to offer symbolic reassurance at a critical juncture for Europe, but a senior US official said Kerry would also stress the importance of other members not following Britain's lead and further weakening the EU. Despite the international expressions of concern, respite from the uncertainty is unlikely for months, at the very least. Cameron has offered to stay on as a caretaker, but he has refused to invoke Article 50 of the EU's Lisbon Treaty, which allows for two years of exit negotiations. Instead he left that job to his successor, who is due to be elected by his Conservative Party sometime before its annual conference in October. Only after the new leader has invoked can work on thrashing out Britain's new relationship with the bloc begin. The man widely tipped as the next prime minister is former London mayor Boris Johnson, the most prominent member of the campaign to leave the EU. No lying down Signs are growing that not all the 16 million Britons who voted to stay in the EU are willing to take the result lying down. Many flocked to back an online petition demanding a second vote, with signatures exceeding three million today morning, more than double the figure the previous afternoon. The petition, posted on Parliament's website before the referendum, said there should be another vote if the outcome was close on a turnout of less than 75 per cent - three points above Thursday's figure. It will have to be considered for debate by lawmakers, but has no legal force and its backers compare with the 17.4 million who voted "leave". The referendum has also re-energised support for Scotland, which voted overwhelmingly to remain in the EU, to break away from the United Kingdom instead. An opinion poll in The Sunday Post said 59 per cent of respondents backed independence, rocketing from 45 per cent of votes cast in a referendum in 2014. Scottish first minister Nicola Sturgeon has said a fresh independence referendum is possible "My challenge now as first minister is to work out how I best protect Scotland's interests, how I try to prevent us being taken out of the EU against our will with all of the deeply damaging and painful consequences that that will entail," she told the BBC's Andrew Marr show. (Reuters)

British EU exit turmoil alarms Asia, rocks Labour opposition

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

Traders said central banks of India and Korea sold dollars to curb fall of their currencies

At least two Asian central banks were suspected of intervening in their currency markets on Friday, according to traders, as global financial markets went into a tailspin after Britain voted to leave the European Union in a historic vote. Multiple traders said the Bank of Korea was thought to have sold dollars to curb the won's fall as the local currency dropped, while the Reserve Bank of India likely sold dollars through state-owned banks to prevent the rupee from falling further. An official at the Bank of Korea declined to comment, but South Korea's Vice Finance Minister Choi Sang-Mok said the government will make all efforts to minimize the impact from Brexit. "Regarding foreign exchange trade, we will use all usable options to stabilize markets, including launching smoothing operations,” he said. A senior policymaker aware of the Reserve Bank of India's plans for Brexit-related market management said that the central bank is "prepared to deal with any volatility." Separately, Japan's finance minister Taro Aso said he is carefully monitoring market developments and will respond as and when needed in the currency markets. A statement from the G7 group of leading industrial economies was expected on Friday. The question will be whether there is any coordinated intervention to ease monetary policy by global central banks, though room for maneuver is modest. "The ECB has few additional options left, yet it could announce more targeted purchases of peripheral sovereign bonds in the case investors start betting against the euro again,” said Markus Schomer, chief economist at Pinebridge Investments. The yen surging to its strongest levels against the dollar in two-and-a-half years, briefly breaking through the 100-yen-to-the-dollar level. Sterling suffered its biggest one-day fall of more than 9 percent against the dollar, hitting its lowest level in three decades. Japanese stocks sank, pushing the Nikkei 225 index down more than 8 percent to its lowest since October 2014, and a similar decline in the Nikkei futures triggered circuit breakers. Money markets were volatile. Fed fund futures effectively moved to pricing in a tiny U.S. rate cut from a rate increase in July. Japan's Deputy Chief Cabinet Secretary Hiroshige Seko told reporters the government was worried about market moves, saying sudden shifts because of the British vote were undesirable. The yen's strength due to its safe-haven status has been a frustration for Japanese authorities, who want a weaker currency to support exports and the economy. But they have been unable to garner support for intervention to weaken it from other major economies, most notably the United States. The 100-yen-per-dollar level has been seen as a pivotal point to test the patience of Japan's monetary officials on intervention. Morgan Stanley expects the dollar to fall to 90 yen as investors seek the Japanese currency out as a relative safe haven, and a further 15-20 percent downside for European equities from current levels. The Australian dollar, often sold off in times of heightened market stress, fell heavily against the dollar and the yen. Traditional stress markers such as interbank dollar funding rates in Singapore and Hong Kong were broadly steady, but treasury bill and front end government bond yields fell. "Because of this matter, we have made preparation in many aspects. We have reserved sufficient liquidity and we are able to handle in different situations," Hong Kong Financial Secretary John Tsang told reporters in the airport on Friday morning before he flew out to Beijing. The Hong Kong Monetary Authority has asked banks to maintain ample cash conditions with them. No unscheduled monetary liquidity injection operations have been taken so far, according to an HKMA spokeswoman. The Singapore stock exchange played its part in trying to reduce volatility by raising margins on Nikkei futures traded on its exchange. The People's Bank of China injected 170 billion yuan ($25.9 billion) on Friday, taking the net injection for the week to 340 billion yuan, the biggest in two months. But that was seen more about averting a cash squeeze at the end of the half year next week, as has happened previously, rather than responding to the Brexit vote. Still, the yuan fell to its weakest level against the U.S. dollar since January 2011 while its offshore counterpart slipped to its weakest level in more than four months. The Philippines' central bank said on Friday it was closely monitoring the foreign exchange market and remains prepared to act to ensure orderly transactions and smooth volatility. (Reuters)

Asian central banks, policymakers wade in to calm markets after Brexit vote

The pound sinks a staggering 9 per cent, fall is even larger than during the global financial crisis

Carnage came to world markets on Friday as early voting returns suggested Britain was on the brink of leaving the European Union, threatening the existence of the entire bloc and its single currency. Risk assets were scorched as investors fled to the safety of top-rated government debt, with FTSE futures off 6 per cent and EMINI S&P 500 futures down 3.5 per cent. The British pound had collapsed no less than 15 US cents, easily the biggest fall in living memory, while the euro slid 2.8 per cent as investors feared for its very future. Sterling sank a staggering 9 per cent to $1.3550, having carved out a range of $1.3462 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. "Sterling is getting smackadoodled," said Tim Kelleher, Head of FX Institutional Sales New Zealand for ASB Bank in Auckland. "While we thought it was all going to be "Remain", it's quite clearly not going to be as clear cut as that." Early official results showed the margins were nail-bitingly tight but pointing to a "Leave". Betting firm BetFair estimated the probability of leaving as high as 74 per cent. Traders were particularly spooked by returns from Sunderland showing a large majority for the "Leave" camp and just a narrow win for "Remain" in Newcastle. With half of 382 counting areas declared, the Leave camp was put at 51.3 per cent against 48.7 per cent for "Remain", according to Reuters calculations. The tremors shook all asset classes and regions. The safe-haven yen sprang higher to stand at 101.00 per dollar, having been as low as 106.81 at one stage. That dragged the Nikkei down 3 per cent and 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. Other currencies across Asia suffered badly on worries that alarmed investors could pull funds out of emerging markets. MSCI's broadest index of Asia-Pacific shares outside Japan slid 3.3 per cent, its biggest fall in 10 months, while Shanghai stocks lost 1 per cent. UK bank shares listed in Hong Kong tumbled on the prospect of a destabilising exit. HSBC fell 8 per cent while Standard Chartered sank 9 per cent. FALSE HOPES? Financial markets have been racked for months by worries about what Brexit, or a British exit from the European Union, would mean for Europe's stability. Early opinion polls had favoured the "Remain" camp and perhaps led to a false sense of complacency in markets. An Ipsos MORI poll put the lead at 8 points while a YouGov poll out just after polls closed found 52 per cent of respondents said they voted to remain in the EU while 48 per cent voted to leave. Sovereign bonds came back into favour as safe harbours against market volatility, with U.S. 10-year Treasury futures jumping 1.29 points. Yields on the cash note fell 16 basis points to 1.58 per cent, the steepest one day drop since 2011. Investors also priced in even less chance of another hike in U.S. 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 U.S. Bank in Portland, Oregon. Commodities likewise swung lower as a Brexit would be seen as a major threat to global growth. U.S. crude shed $2.02 to $48.09 a barrel in erratic trade while Brent fell $1.91 to $49.00. Copper slipped but gold galloped more than 3 per cent higher thanks to its perceived safe haven status. (Reuters)

Sterling, stocks in free fall

Asian shares edged up and Sterling stood close to its peak for the year on Thursday, as investors were cautiously optimistic that British voters would opt to remain in the European Union at a referendum later in the session.&nbsp; 
 
Two opinion polls published late on Wednesday, a few hours before voters were due to begin to cast their votes, showed the &quot;Remain&quot; camp gaining momentum in the closely divided campaign. 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan edged up 0.2 per cent in early trading, shrugging off modest overnight losses on Wall Street. 
 
Japan&#39;s Nikkei share average rose 0.3 per cent. 
 
&quot;Markets seem to have almost entirely priced in a &#39;Remain&#39; vote win, meaning that the market moves and volatility around the vote may be far less than many had been expected,&quot; wrote Angus Nicholson, market analyst at IG in Melbourne. 
 
&quot;Nonetheless, markets are still incredibly nervous and some sharp market moves are likely over the next 24 hours,&quot; he said. 
 
Sterling rose to $1.4847, its highest against the dollar in 2016, and was last up 0.6 per cent at $1.4798. 
 
The perceived safe-haven Yen also slipped on receding fears of the market turmoil that would likely follow if Britain were to pull out of the EU. 
 
The dollar added 0.2 per cent to 104.69 Yen , while the euro gained 0.5 percent to 118.54 yen . 
 
The euro rose 0.2 per cent to $1.1322 , while the dollar index, which tracks the greenback against a basket of six rival currencies, slipped 0.1 per cent to 93.582. 
 
On the US data front, home resales rose to a more than nine-year high last month against a backdrop of historically low mortgage rates, adding to recent upbeat second quarter data. 
 
Crude oil prices rose after settling down more than 1 per cent on Wednesday after the U.S. government reported a smaller-than-expected inventory drawdown. 
 
Brent added 0.7 per cent to $50.23 a barrel after shedding 1.5 per cent on Wednesday, while U.S. crude was up 0.8 per cent at $49.53 after giving up 1.4 per cent in the previous session. 
 
Spot gold plumbed a two-week low of $1,260.36 an ounce and was last down 0.4 per cent at $1,261.24. 
 
(Reuters) 
&nbsp;

Sterling rose to its highest against Dollar in 2016 and Yen slipped on diminishing fears of a market turmoil that would follow if Britain were to pull out of EU

Asian shares edged up and Sterling stood close to its peak for the year on Thursday, as investors were cautiously optimistic that British voters would opt to remain in the European Union at a referendum later in the session. Two opinion polls published late on Wednesday, a few hours before voters were due to begin to cast their votes, showed the "Remain" camp gaining momentum in the closely divided campaign. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2 per cent in early trading, shrugging off modest overnight losses on Wall Street. Japan's Nikkei share average rose 0.3 per cent. "Markets seem to have almost entirely priced in a 'Remain' vote win, meaning that the market moves and volatility around the vote may be far less than many had been expected," wrote Angus Nicholson, market analyst at IG in Melbourne. "Nonetheless, markets are still incredibly nervous and some sharp market moves are likely over the next 24 hours," he said. Sterling rose to $1.4847, its highest against the dollar in 2016, and was last up 0.6 per cent at $1.4798. The perceived safe-haven Yen also slipped on receding fears of the market turmoil that would likely follow if Britain were to pull out of the EU. The dollar added 0.2 per cent to 104.69 Yen , while the euro gained 0.5 percent to 118.54 yen . The euro rose 0.2 per cent to $1.1322 , while the dollar index, which tracks the greenback against a basket of six rival currencies, slipped 0.1 per cent to 93.582. On the US data front, home resales rose to a more than nine-year high last month against a backdrop of historically low mortgage rates, adding to recent upbeat second quarter data. Crude oil prices rose after settling down more than 1 per cent on Wednesday after the U.S. government reported a smaller-than-expected inventory drawdown. Brent added 0.7 per cent to $50.23 a barrel after shedding 1.5 per cent on Wednesday, while U.S. crude was up 0.8 per cent at $49.53 after giving up 1.4 per cent in the previous session. Spot gold plumbed a two-week low of $1,260.36 an ounce and was last down 0.4 per cent at $1,261.24. (Reuters)

Asia stocks, Sterling rise as Brexit anxiety abates

Asian shares rose after a tentative start on Tuesday, cautiously extending a rally triggered by growing expectations that British voters will opt to remain in the European Union (EU) in this week&#39;s referendum. 
 
Morgan Stanley Capital Investment&#39;s broadest index of Asia-Pacific shares outside Japan was up by 0.2 per cent. 
 
Investors remain wary ahead of Thursday&#39;s British vote, as well as Federal Reserve chief Janet Yellen&#39;s two-day testimony before Congress starting later on Tuesday, as she might offer clues on the timing of the next US interest rate increase. 
 
&quot;With Yellen&#39;s congressional testimony and the UK referendum on our doorstep, markets all around are exercising caution,&quot; said Andrew Meredith, co-managing director at Tyton Capital Advisors in Tokyo. 
 
Bookmakers&#39; odds have also shown &quot;Remain&quot; gaining traction in Britain&#39;s referendum, with Betfair putting the implied probability of such an outcome at 72 per cent on Monday, up from 60-67 per cent on Friday. 
 
Two of the latest polls showed the &quot;Remain&quot; camp in the lead, reversing a recent rise in support for pulling out and prompting a rally in global equities and the pound. 
 
&quot;The polls were not supposed to influence as much as they have, but overnight we have seen a rampant position adjustment and an unwind of Brexit hedges,&quot; wrote Chris Weston, chief market strategist at IG in Melbourne. 
 
Japan&#39;s Nikkei stock index reversed early losses and added 1 per cent. 
 
A Reuters poll showed that confidence at Japanese manufacturers inched up in June from the prior month&#39;s three-year low and is seen rising only slightly ahead, reflecting worries about the yen&#39;s rise as Britain decides whether or not to leave the EU. 
 
Minutes of the Bank of Japan&#39;s April meeting released on Tuesday showed policymakers believe overseas economies continue to pose downside risks to Japan&#39;s economy and prices. 
 
The Pound was steady on the day at $1.4660 after it rose as high as $1.4721 on Monday, extending a recovery from last Thursday&#39;s more than two-month trough of $1.4013. 
 
The Dollar added 0.2 percent to 104.13 Yen, moving away from Thursday&#39;s nearly two-year low of 103.55 that was hit after the Bank of Japan held policy steady, disappointing investors hoping for more stimulus. 
 
Finance Minister Taro Aso said on Tuesday that Japan would respond to rapid currency moves, although he said the country would not intervene in the market so &quot;easily.&quot; 
 
The Euro gained 0.2 per cent to $1.1331. 
 
Later in the session, Germany&#39;s constitutional court will rule on the emergency bond-buying plan devised by the European Central Bank (ECB) during the financial crisis. An outright rejection of the programme is viewed as unlikely, but the ruling could potentially upset the ECB&#39;s current programme and roil markets. 
 
Crude oil futures gave back some of their gains after surging 3 per cent on Monday as Brexit fears waned. 
 
Brent crude shed 0.5 per cent to $50.41 a barrel, while US crude was down 0.4 per cent at $49.18. 
 
Spot gold also inched lower, down 0.2 per cent to $1,286.11 an ounce.

Two of the latest polls show the 'Remain' camp in the lead and prompting a rally in global equities and the Pound

Asian shares rose after a tentative start on Tuesday, cautiously extending a rally triggered by growing expectations that British voters will opt to remain in the European Union (EU) in this week's referendum. Morgan Stanley Capital Investment's broadest index of Asia-Pacific shares outside Japan was up by 0.2 per cent. Investors remain wary ahead of Thursday's British vote, as well as Federal Reserve chief Janet Yellen's two-day testimony before Congress starting later on Tuesday, as she might offer clues on the timing of the next US interest rate increase. "With Yellen's congressional testimony and the UK referendum on our doorstep, markets all around are exercising caution," said Andrew Meredith, co-managing director at Tyton Capital Advisors in Tokyo. Bookmakers' odds have also shown "Remain" gaining traction in Britain's referendum, with Betfair putting the implied probability of such an outcome at 72 per cent on Monday, up from 60-67 per cent on Friday. Two of the latest polls showed the "Remain" camp in the lead, reversing a recent rise in support for pulling out and prompting a rally in global equities and the pound. "The polls were not supposed to influence as much as they have, but overnight we have seen a rampant position adjustment and an unwind of Brexit hedges," wrote Chris Weston, chief market strategist at IG in Melbourne. Japan's Nikkei stock index reversed early losses and added 1 per cent. A Reuters poll showed that confidence at Japanese manufacturers inched up in June from the prior month's three-year low and is seen rising only slightly ahead, reflecting worries about the yen's rise as Britain decides whether or not to leave the EU. Minutes of the Bank of Japan's April meeting released on Tuesday showed policymakers believe overseas economies continue to pose downside risks to Japan's economy and prices. The Pound was steady on the day at $1.4660 after it rose as high as $1.4721 on Monday, extending a recovery from last Thursday's more than two-month trough of $1.4013. The Dollar added 0.2 percent to 104.13 Yen, moving away from Thursday's nearly two-year low of 103.55 that was hit after the Bank of Japan held policy steady, disappointing investors hoping for more stimulus. Finance Minister Taro Aso said on Tuesday that Japan would respond to rapid currency moves, although he said the country would not intervene in the market so "easily." The Euro gained 0.2 per cent to $1.1331. Later in the session, Germany's constitutional court will rule on the emergency bond-buying plan devised by the European Central Bank (ECB) during the financial crisis. An outright rejection of the programme is viewed as unlikely, but the ruling could potentially upset the ECB's current programme and roil markets. Crude oil futures gave back some of their gains after surging 3 per cent on Monday as Brexit fears waned. Brent crude shed 0.5 per cent to $50.41 a barrel, while US crude was down 0.4 per cent at $49.18. Spot gold also inched lower, down 0.2 per cent to $1,286.11 an ounce.

Asian shares rise as Britain expected to stay in EU

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