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.

Champions Trophy: India bowl Proteas out for paltry 191
It remains the only time Pakistan have won the World Cup and Hafeez said that was where they picked up the "unpredictable" tag. While all the focus is on how India's top three approach the innings, South Africa will want to get him as early as possible.

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.

In a credibility contest with Trump, James Comey is the obvious victor
There were some lighter, and literary, moments in Comey's testimony . "And I didn't say the other". Sen. "Despite so many false statements and lies, total and complete vindication", Mr Trump wrote.

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.

WWDC 2017: Apple announces iOS 11; Focuses on iPad productivity
The iPad version of iOS 11 is heavily inspired by macOS and feature some familiar features from the full-sized operating system. At WWDC , Apple announced the speaker category for HomeKit, so other speaker makers could more tightly integrate with iOS.

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.

Related news:

Hot News

Iran has sent five planes of food to Qatar: airline
Jun 11, 2017 - 22:20
He told reporters on Thursday that Qatar had never experienced this type of hostility, even from an enemy country. Sheikh Sabah aims resolving a diplomatic crisis between Qatar and other Arab nations.

We are not ready to surrender: Qatar Foreign Minister
Jun 11, 2017 - 22:19
The moves taken against Doha include banning Qatar Airways from airspace and closing Qatar s only land border with Saudi Arabia . But these demands come while Qatar's allies have for the most part been forced onto the back foot.

'Dead woman walking': UK's Theresa May clings to power
Jun 11, 2017 - 22:17
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".

isis-killer-beheading-video-story-top United Kingdom leader May strikes tentative deal with Northern Ireland party
Jun 11, 2017 - 22:16
She said Brexit talks would begin on June 19 as scheduled, the same day as the formal reopening of parliament. But the Tories are left with few options after failing to reach a majority in Thursday's election .

White House, Congress Republicans nearing key tax overhaul decisions
Jun 11, 2017 - 22:16
President Trump will make it very clear that he wants to sign tax reform by the fall, which is widely expected to significantly boost economic growth.

Real Madrid's Alvaro Morata on cusp of joining Manchester United for £60million
Jun 11, 2017 - 22:13
United initially had a £52m bid rejected but are hoping a new offer of £60m will suffice for the Madrid board. It's logical for a forward who has scored 19 goals .

Macron's Republic on the Move leading in French parliamentary vote
Jun 11, 2017 - 22:07
Le Pen herself is running for a seat in Henin-Beaumont in northern France. Former President Francois Hollande 's Socialist Party had 280 seats.

Nadal too strong for Thiem, to meet Wawrinka in Sunday's final
Jun 11, 2017 - 22:06
Nadal was joined on the presentation by his uncle Toni, his coach since boyhood, who is stepping down at the end of the year. The men's final of the French Open will be played between nine-times victor Rafa Nadal and 2015 victor Stan Wawrinka .

isis-killer-beheading-video-story-top Soccer superstar invites girl disqualified from game to soccer academy
Jun 11, 2017 - 22:04
Instead, she was forced to answer questions about her hairstyle and gender, which shockingly disqualified her team. Springfield Soccer Club organizers declined comment to WOWT 6 News, instead directing requests to their attorney.

EIA Report Renews Fears of Persistent Supply Glut
Jun 11, 2017 - 22:04
Traders believe that the reduction in production of oil by OPEC member countries is one of the reasons why prices are going up. For 2017, production is forecast to rise to 9.33 million barrels a day, compared with a May estimate of 9.31 million.

isis-killer-beheading-video-story-top London attack: Minute's silence held as thousands across capital honour terror victims
Jun 11, 2017 - 22:03
Zaghba was identified as a possible militant threat after he was stopped at Bologna airport in 2016 as tried to reach Syria . Saturday's attack was the third in as many months involving suspects who had been on the radar of British authorities.

Harry Kane describes his feelings after first match as England captain
Jun 11, 2017 - 22:01
Chris Martin , who had scored a late victor against Slovenia after coming off the bench, took over from Anya in the 82nd minute. "They keep coming back at you", he said . "I have got to say it was like watching a heavyweight boxer versus a middleweight".

isis-killer-beheading-video-story-top 15-year-old arrested in death of 10-year-old Colorado girl
Jun 11, 2017 - 21:58
A 15-year-old boy has been arrested on suspicion of first-degree murder in the death of a 10-year-old Colorado girl. Without giving additional details, the Adams County Coroner explained the death was "other than accidental".

Anti-DUP protesters gather in London to pressure Conservative leader Theresa May
Jun 11, 2017 - 21:56
An agreement with the DUP would bring in an additional 10 seats, pushing the party over the 326-seat threshold. Gavin Barwell, a former housing minister, replaces joint chiefs of staff Nick Timothy and Fiona Hill.

'Old man' Wawrinka meets Nadal in French final
Jun 11, 2017 - 21:55
Rafael Nadal celebrates his victory following the men's singles semi-final match against Dominic Thiem . Murray would lean, or even lunge, and somehow put his racket strings on seemingly unreachable shots.