The pound is down 0.30 per cent against the dollar after Spain’s PM threatened again to veto a draft Brexit agreement between the UK and EU.
This comes a day after Prime Minister Theresa May suggested that she had reached an agreement with her Spanish counterpart on the issue of Gibraltar.
After my conversation with Theresa May, our positions remain far away. My Government will always defend the interests of Spain. If there are no changes, we will veto Brexit.
— Pedro Sánchez (@sanchezcastejon) November 22, 2018
Fiona Cincotta from cityIndex commented: “The terms of withdrawal and declaration on future relations are expected to be signed off by EU member states on Sunday.
“London shares and the pound performed a U-turn this morning because Brexit tensions are not abating, with stocks trading higher and the pound firmly on a downward trajectory. Stocks are being further helped by the anticipation of the Black Friday spend fest across Europe and the US, when operations restart there later today following the Thanksgiving holiday.
“European gauges are all in positive territory led by Italy where banks rallied and bond yields dropped on reports – later denied – that the country’s EU Affairs Minister Paolo Savona is considering resigning. Milan’s FTSE MIB index is up 0.7% this morning with the FTSE trading 0.29% higher.”