Spreadex Market Update

Pound prepares for Brexit deal assessments



After Tuesday’s turbulent session the markets were hesitant at Wednesday’s open, with another Brexity day on the horizon likely muting investors’ collective appetite.

The Treasury is set to publish its economic analysts of both Theresa May’s Brexit agreement and a ‘no deal’ situation; the former would reportedly cost £40 billion over 15 years, while the latter would see a horrendous £150 billion drop in output. Doing the rounds on breakfast TV, Chancellor Phillip Hammond said the current deal is the ‘best plan available’, going on to state that ‘if the only consideration was the economy’ then remaining in the EU would be the better option, though ‘not by much’.

The Bank of England will also unveil its own economic assessment of the various options on the table – excluding staying in the European Union – but not until 4.30pm, when it’ll arrive alongside the latest bank stress tests.

While the pound avoided another sharp decline, it didn’t make much progress in recovering yesterday’s Trump trade comment-spurred slump, clawing back just 0.1% against the dollar and 0.2% against the euro.

As for the European indices, they were rather tentative after the bell, despite the Dow and Chinese market-lifting assurances from National Economic Council director Larry Kudlow that Trump thinks there is a ‘good possibility’ that the US and China can reach an agreement in Argentina. The FTSE rose 0.1%, with the DAX flat just above 11300 and the CAC up 0.2%.

SEARCH FOR AN ARTICLE:

Enter a keyword and search for all relevant articles

MARKET ANALYSIS

RECENT POSTS

Daily Market Update

22.04.26 Wednesday Morning

The S&P 500 closed lower on Tuesday as doubts over the Iran ceasefire weighed on sentiment, while the US dollar...

Read More

Economic Diary

22.04.26

Read More

Financial Trading Blog

FTSE 100 Under Pressure From Oil Ahead of CPI, Sainsbury's Earnings

Read More

Economic Diary

21.04.26

Read More

Weekly Technical Analysis

Weekly Technical Analysis

Read More

Financial Trading Blog

Nasdaq At Record Highs Ahead of Tesla, Intel Earnings

Read More

DISCLAIMER


Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.

Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.

No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.

The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.