UK stocks under pressure from falling pound

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A revival of interest in risk have not been developed, and after mixed dynamics in Asia, the stock market Europe is trading mostly in the red. The exception is British FTSE 100, which is located slightly above the opening level against the background of the collapse of the pound to near 3-year lows under the 1.20 mark in the context of increasing the probability of early parliamentary elections. Today if Parliament approves a bill which blocks the exit from the EU without a deal, the Prime Johnson may announce early elections.
The Russian index, which yesterday gained more than 1%, are unable to resist the universal nervousness and moved on to the reduction. The pressure is moderate, but could increase, judging by the resumption of the decline in the yields of global bonds. Moreover, recently there have been signs of a further escalation of the trade war – China has advised Washington to stop abusing the concept of national security, which could lead to retaliatory verbal reactions trump.
The ruble after yesterday’s consolidation document, reflecting sentiment in the Forex market. The dollar is again trading close to the mark of 67 rubles. on the background of buoyant demand for the American currency as the Euro. Which is paired with the dollar trading at over 2-year lows, reached the mark of 73 rubles. Judging by the continuation of negative dynamics in the oil market, further strengthening of the USD in the near future will lead to the violation of the integrity of level of 67 rubles., if investor sentiment does not improve.
___________________ Arseniy Dadashev,
Director,
Academy of management Finance and investment