📊 Q3 Earnings are here! Plan ahead with key data on upcoming stock reports - all in 1 placeSee list

UPDATE 3-Turmoil over future of PM May, Brexit bruises British stocks

Published 2019/05/23, 18:13
© Reuters.  UPDATE 3-Turmoil over future of PM May, Brexit bruises British stocks
UK100
-
BARC
-
TUI1n
-
SRP
-
FTMC
-
STOXX
-
IDSI
-
ISEQ
-
MERL
-

* FTSE 100, FTSE 250 down 1.4%

* Worries mount over May's future, Brexit prospects

* TUI falls after Barclays (LON:BARC) "staycation" study

* Serco surges after deal to buy U.S. defence supplier (Adds news items, comment, graphic, updates to closing prices)

By Shashwat Awasthi and Yadarisa Shabong

May 23 (Reuters) - Heightened concerns over the course of Brexit and mounting pressure on Prime Minister Theresa May to step down weighed heavily on Britain's mid-cap index and domestically-focused blue-chip stocks on Thursday.

As the pound fell, the FTSE 250 .FTMC lost 1.4% to hit its lowest point since March 29, when Britain was originally scheduled to exit the European Union. Dublin's main index .ISEQ , often regarded as a barometer of Brexit jitters, was also down nearly 1.4%.

May's final attempt to muster parliamentary support for a divorce deal on Wednesday sparked a fierce backlash by some of her Brexit-supporting ministers. The turmoil was compounded when prominent Brexit supporter and Leader of the House of Commons, Andrea Leadsom, resigned from the government.

This cast further uncertainty over Britain's political scene and sparked a sell-off in sterling, amid speculation that other ministers could also quit, and re-emerging fears of a "no-deal" Brexit after May is replaced. GBP/

"For sterling it will depend entirely on what, or rather who, is next (as UK prime minister). In the interim we should expect volatility in sterling crosses to remain elevated," Markets.com analyst Neil Wilson said.

Britain-focused banks and industrial stocks on the FTSE 100 .FTSE were also hit as the index fell 1.4%, though sterling's slide helped its exporter stocks gain despite lingering global trade concerns.

As May's premiership hung in the balance, Royal Mail RMG.L skidded 10.3% to a record low on the mid-cap index.

"There is a very slight risk that with Theresa May in turmoil a (Jeremy) Corbyn government is more likely and he would nationalise businesses like Royal Mail," a trader said. majors were the biggest drags on the FTSE 100 as unresolved Sino-U.S. trade tensions hit demand outlook and pressured oil prices. O/R

Shares of TUI TUIT.L fell 4.8% to the bottom of the main bourse after a survey by Barclays showed more Britons would opt for "staycations" this year over heading for trips abroad, with many citing the impact of Brexit on travel and finances.

Mid-cap outsourcing firm Serco SRP.L jumped 7.4% on its best day in more than five months, after saying it would buy U.S. Navy supplier Alion's Naval Systems Business Unit. Tussauds-owner Merlin Entertainments MERL.L advanced 7.5% after hedge fund ValueAct urged it to explore a go-private deal, calculating the move could boost the company's value by around a third. FTSE on track for monthly loss but outperforms STOXX 600

https://tmsnrt.rs/2YH6l69

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.