FTSE 100 exporters lose momentum after Brexit delay lifts pound

Top UK stocks saw their four-day rally broken on Wednesday after news of another Brexit extension saw the pound find support.

FTSE 100 Source: Bloomberg

The FTSE 100 had the wind knocked out of its sails on Wednesday, with the Britain’s top stocks breaking a four-day winning streak after another Brexit extension helped the pound rally.

The exporter heavy FTSE 100 slid by 0.1% on Wednesday morning, while the more domestic-focused FTSE 250 index recorded a 0.3% gain, driven by the uptick in the pound.

Theresa May seeks another Brexit extension

The British Prime Minister Theresa May announced on Tuesday evening that she will seek another Brexit extension from leaders in Brussels beyond April 12.

May plans to use the extra time to try and hash out a deal with the support of Labour leader Jeremy Corbyn in the hope of drafting a withdrawal agreement capable of gaining enough cross-party support to get it passed after her own deal was defeated for the third time last week.

If they are unsuccessful, there is still a chance that Britain could bail out of the bloc without a deal but talks between May and Corbyn offer hope that the UK will continue to have a close economic relationship with the EU after Brexit.

Homebuilders stocks rally, while exporters hurt by sterling’s surge

News of another delay and the renewed hopes of a softer Brexit helped boost shares in housebuilders like Taylor Wimpey, Persimmon and Barratt Developments edged higher, with the trio seeing their stocks rally between 2%-3% on Wednesday.

However, major UK exporters were hit by a stronger sterling, with British American Tobacco, spirits maker Diageo, GlaxoSmithKline and Unilever driving the FTSE 100 lower, with them all falling by 1%-2%.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

European Central Bank meeting

Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement on 6 June 2019.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

All trading involves risk and losses can exceed deposits. Trading CFDs may not be suitable for everyone so please ensure that you fully understand the risks involved. All trading involves risk and losses can exceed deposits.