Wednesday 19 June 2019

Britain's FTSE 100 futures boosted by weaker sterling after Brexit vote

(Jonathan Brady/PA)
(Jonathan Brady/PA)
Independent.ie Business Desk

Independent.ie Business Desk

Britain's blue-chip stock futures were higher on Wednesday following a sharp fall in sterling overnight after British lawmakers voted down a proposal in parliament that aimed to prevent a potentially chaotic "no-deal" Brexit.

Futures in the exporter-focused FTSE 100 were up 0.5pc, building on the index's more than 1pc rally on Tuesday ahead of the vote.

The index is often boosted by a weaker domestic currency because its multinational companies earn a big portion of their revenue abroad in foreign currency.

Britain's parliament rejected a proposal to give parliament a path to prevent a potentially chaotic "no-deal" exit, but accepted two amendments - one seeking to replace the Irish backstop with alternative arrangements, and another rejecting the notion of a "no-deal" Brexit.

Following the vote, Goldman Sachs nudged up its estimated probability of a "no-deal" Brexit to 15pc from 10pc.

The market was outperforming its euro-zone peers, with Paris' CAC 40 futures up slightly and Germany's DAX 30 futures lower amid broader caution ahead of Federal Reserve's interest rate policy guidance and US-China trade talks.

Reuters

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