FTSE 100 rises above 7,000 mark
Sterling has plummeted to 0.5 per cent to $1.2779 – the lowest amount since 1985.
The drop was caused by Prime Minister Theresa May saying over the weekend that Brexit will begin from March next year.
Despite the drop, the FTSE 100 share index has risen above 7,000 for the first time since May last year.
— Francine Lacqua (@flacqua) October 4, 2016
Kit Juckes of French bank Société Générale said: “Confirmation that the UK Government plans to trigger article 50 by the end of Q1 2017 hit sterling harder than I expected yesterday, which is saying something.
“There will be fiscal slippage as the chancellor won’t try to hit previous deficit reduction targets, but a significant easing is not on the cards. Nor is the government showing any signs of shifting a position where control on immigration is the hardest of lines in negotiations to leave the EU, and won’t be sacrificed or watered down in order to keep access to the single market, particularly for financial services. There’s nothing there to soften the outlook for sterling, at all.”