Rishi Sunak’s new Brexit deal for Northern Ireland breathed some life back into the pound yesterday, yet the currency gave back some of these gains on Tuesday as markets took time to digest the information.
While the deal may provide a reset for UK/EU relations and be good for the UK economy, reports suggest some in the DUP are not fully satisfied by what’s on the table.
Russ Mould, investment director at AJ Bell, said: “The FTSE 100 slipped 0.4% to 7,902, pulled down by poorly received results from Ocado and Croda, and housebuilders falling in response to Travis Perkins’ cautious outlook in its latest figures. The builders’ merchant said it was preparing for ‘more challenged’ private domestic new-build and repair, maintenance and improvement markets.
“The cracks in the property sector are becoming more like the ones you see with subsidence than hairline gaps in plaster. Sellers are slashing asking prices, transaction volumes have fallen on a seasonally adjusted basis, and companies serving the UK property market are bracing themselves for a tougher climate this year.
“Croda warned that its 2023 performance would be more reliant on the second-half period than in the prior year. Investors hate hearing that phrase as it raises the chances of a profit warning if that six-month period doesn’t live up to expectations.”