The British pound sank on Friday, boosting the London stock market after British Prime Minister Boris Johnson warned he was ready to walk away from European Union trade talks and prepare for a “no deal” Brexit. .
The British pound fell below $ 1.29 after Johnson accused the EU of not negotiating seriously and declared that Britain should “prepare” for an Australia-style deal based on World Trade Organization rules to starting in January “unless there is a fundamental change of approach” from Brussels. .
It comes after an EU summit this week demanded Britain urgently give ground to fair trade rules to unlock post-Brexit negotiations.
“The British pound fell sharply on comments from Prime Minister Boris Johnson calling for the UK to prepare for a no-deal exit in January and accusing the EU of not dealing seriously,” said Markets.com analyst Neil Wilson .
Johnson’s comments boosted gains in the London stock market, with a 1.3 percent rise in afternoon deals.
A weak pound raises the share prices of companies listed on the FTSE 100 index that make big gains in dollars.
“A weak pound has been good for multinationals on the FTSE 100, while some better earnings have supported European equities,” overall, said Jane Foley, an analyst at Rabobank.
“However, the new Covid-19 restrictions continue to cloud the picture,” he told AFP.
Europe’s major stock markets rebounded sharply from Thursday’s strong selloff triggered by the tightening of coronavirus lockdown measures.
In the eurozone, Frankfurt’s main stock index gained 0.8 percent in the middle stage, with industrial giant Thyssenkrupp rising 15 percent to 4.77 euros after its British rival Liberty made an informal offer for its products. steelmaking activities, but without disclosing a price.
Paris gained 1.5 percent despite the impending Covid-19 curfew in the French capital.
In commodities, oil prices fell on stubborn fears of energy demand ahead of a meeting of key crude producers next week.
Traders were also aware of developments in Washington as lawmakers scrambled to find a deal on a new stimulus for the troubled US economy, with a disappointing employment report highlighting the need for action.
With polls showing him far behind in the race for the White House, President Donald Trump said he was open to stimulus greater than the $ 1.8 trillion offered last week as he seeks to bridge the gap with Joe Biden.
Asian stock markets closed mixed on Friday, clouded by news that Wall Street ended in the red for a third day.
This story was published from a news agency feed with no changes to the text.
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