FTSE 100 slides as the pound rallies after Brexit deadline extended
UK stocks edged lower on Friday as Sterling made gains after Theresa May is awarded a two-week Brexit extension by Brussels.
The FTSE 100 fell 0.8% on Friday in response to Sterling making gains on the back of news that Brussels has granted Theresa May a two-week Brexit extension.
The UK mid-market also saw significant decline too, with the FTSE 250 sliding 0.7%.
Sterling rallies after Article 50 extension granted
The pound made gains on Friday after EU leaders approved an extension of Article 50 until April 12, giving UK lawmakers more time to deliberate on how to leave the bloc.
‘It’s clear the EU for now doesn’t want to be seen to force Britain out, but its patience won’t last forever,’ Markets.com analyst Neil Wilson told Reuters.
May will have breathed a sigh of relief after being granted more time to persuade MPs in Westminster to vote for her revised deal, but with nothing materially different to offer UK lawmakers it is likely her plan will fail when it is voted on for a third time.
FTSE 100 fallers
AstraZeneca helped dragged the Footsie lower, with the pharmaceutical company sliding more than 2% on Friday to £63.42.
However, the worst performer on the UK stock market this week was struggling British department store Debenhams, with the stock losing more than 60% of its value after its management was forced to admit that some of its restructuring options would offer no equity value to shareholders.
This information has been prepared by IG, a trading name of IG Markets 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.
See an opportunity to trade?
Go long or short on more than 16,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets