British pound slips after election shock

British pound slips after election shock

Kathleen Brooks, research director at City Index, said: "Perhaps the market is looking at this result as a vote for a softer Brexit, which could boost the pound in the long run".

Traders will turn their attention to next week's U.S. Federal Reserve policy meeting, where the central bank is widely expected to deliver this year's second rate hike.

But with the pound at its lowest level since since Theresa May called the snap election on 18 April, the FTSE 100 was pulled higher as the worldwide companies that dominate the blue chip index stand to benefit from weakness in sterling.

Britain's FTSE 100 index rose 1 percent, and the pan-regional FTSEurofirst 300 index of leading European shares rose 0.36 percent to 1,534.20.

But, without knowing for certain how May's cabinet will look when talks start, there is no guarantee that the United Kingdom will push for single market access.

With over half the seats counted, the results showed a large swing to the opposition Labour Party, with the BBC forecasting the Conservatives would hold a reduced 318 seats in the 650-member parliament. Sterling has been trading in a range between $1.28 and $1.30 in recent weeks.

'Wonder Woman' buries 'The Mummy' at box office
It won't come close to getting the worst score on Rotten Tomatoes , though, as that honor belongs to Cocktail from 1988. From a critics view, that would make The Mummy a flop, even if the film does earn double what it cost to make.

Sterling tumbled as much as 2.5% on Friday, while the FTSE share index opened higher, after British voters denied any party a majority of seats in parliament, plunging the country into political chaos days before the start of Brexit talks.

Markets had assumed May would easily increase her majority and betting agencies were taking wagers on whether she would lose her job.

"At this stage, there is no obvious way a formal, stable coalition government can be constructed, and therefore there is a high likelihood of a potentially prolonged period of uncertainty over who will be prime minister", said John Wraith, a strategist at UBS.

There was much less drama elsewhere.

Sky News Economics Editor Ed Conway said: "Yet again there's been another shock to the system".

Political analysts see that as reducing the chances of a snap election in the coming months.

'Dead woman walking': UK's Theresa May clings to power
If neither party can command a majority in parliament for their Queen's Speech, it is likely a fresh election would be called. But Mr Johnson has denied any plot to take over Ms May's position as prime minister, labelling any such rumours as "tripe".

Though Labour is not expected to form the next government, even through an alliance with smaller parties, the vote suggests the British warmed to the party's vision of keeping close ties with the lucrative European Union market.

Comey accused President Donald Trump of firing him to try to undermine its investigation into possible collusion by his campaign team with Russia's alleged efforts to influence the 2016 presidential election.

"I think the market is taking less of an alarmist review of this situation because there is no smoking gun here", said Jefferies & Co money market economist Thomas Simons.

By 02:55 GMT sterling had shed 1.2% to $1.2743, having earlier carved out a two-month trough of $1.2693.

"So it's not particularly impactful for thinking about".

The S&P 500 gained 10.14 points, or 0.42 percent, to 2,443.93 and the Nasdaq Composite added 3.30 points, or 0.05 percent, to 6,325.06.

Stokes ton sees England secure Series win
Amla was hit flush on the helmet grille by Wood before falling falling for 24 when he drove Stokes to Morgan at short extra cover. Amla's knock ensured that England bowlers did not make any inroads to their batting line and went home empty handed.

Oil prices remained subdued, with Brent having settled at its lowest since November 29, the eve of an OPEC production cut deal. Both benchmarks are down roughly four per cent in what will be a third consecutive weekly fall.

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