FTSE nudges higher while Brexit landscape continues shifting

European markets are mixed with the FTSE just above the flat line and the DAX in negative territory only a day after it bounced back to catch up with global markets

European markets are mixed with the FTSE just above the flat line and the DAX in negative territory only a day after it bounced back to catch up with global markets. In London, industrials and house builders were among the top gainers, benefitting from a slightly weaker pound and marginally cheaper oil prices. 

Sterling unstable ahead of indicative votes

The pound has been declining since late Tuesday despite some brief positive interludes, reacting to the repositioning in Parliament ahead of the indicative Brexit vote Wednesday that will for the first time put multiple Brexit options in front of Parliamentarians to see which one gathers the most support. 

The decision to open the vote to any option has spooked several hard-line Brexiteers causing them to line up behind the Prime Minister rather than risk a long Brexit delay. The uncertainty will keep the currency market on its toes, making sterling a hard buy. 

Asian markets shrug off Chinese data

Asian shares managed to nudge higher despite data showing a sharp decline in earnings at China’s large industrial firms as investors pinned their hopes that the country’s government will react to the decline by pumping more money into the industry to prop it up. 

On the other hand, the data channeled fresh buying into the dollar as a risk averse buy, as did weaker US housing numbers and a decline in US consumer confidence.

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