Stock indexes worldwide rebounded on Wednesday, and the euro and pound sterling bounced back as easing geopolitical concerns and upbeat economic data from China
The British pound rose on Tuesday as opposition parties vowed to try and pass a law to prevent a no-deal Brexit at the end of October, encouraging traders to buy sterling even though most fear the country is headed for a disorderly exit from the EU.
Global stock markets mostly climbed on Monday after China unveiled fresh stimulus measures, while below-par US jobs data reinforced expectations the Federal Reserve would cut interest rates this month.
Central European currencies edged up on Monday after the British parliament forced prime minister Boris Johnson to seek an extension to an Oct.31 deadline for leaving the European Union, reducing expectations of a ‘no deal’ Brexit.
World stock indexes edged up on Wednesday, with the S&P 500 boosted by gains in shares of Apple that offset Texas Instruments’ disappointing forecast, and the British pound steadied as European Union
European stocks skidded off record highs and sterling dropped more than 1% on Tuesday, as reports that Britain’s prime minister was ready to play rough in Brexit talks brought December’s cross-market rally to a halt.
Sterling rose against the dollar on Monday, as plans to ease coronavirus lockdowns in the UK and signs the economy may bounce back due to pent-up demand kept the currency just below the $1.27 touched late last week.
World stocks touched record highs on Friday, as trading wound down before the year-end holidays, while the British pound was heading towards its worst week for more than two years amid renewed worries over how Britain will leave the European Union.
The pound, which has fallen sharply in recent weeks as investors fretted that Johnson's plan sharply increased the risk of a no-deal Brexit, was 0.4% higher at $1.2891, moving away from two-week lows.