Saturday 20 July 2019

Muted market shows investors shrugging off Brexit chaos

Pound stayed stable Stock image: Yui Mok/PA
Pound stayed stable Stock image: Yui Mok/PA
Gavin McLoughlin

Gavin McLoughlin

The pound stayed stable versus the euro after Theresa May’s government won a vote of confidence in the House of Commons tonight.

The muted market reaction was a further sign that currency investors are largely shrugging off the Brexit chaos of recent days.

Sterling rose versus the euro on Tuesday night despite the defeat of Theresa May’s withdrawal agreement, with analysts saying some investors believe the deal’s failure makes an extension of Article 50 or even a reversal of Brexit more likely.

A stronger sterling is better for Irish exporters as it makes Irish goods cheaper to buy in the UK.

Irish shares also shrugged off the defeat of Mrs May’s withdrawal agreement, with the ISEQ index rising more than 1pc in today’s trading session.

Analysts have warned however that markets are likely to be volatile due to the uncertainty surrounding the way forward.

Online Editors

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