FTSE gains fade despite GBP tumble
After early gains, a fall in sterling sparks a resurgence for the FTSE 100
- Volatile day sees sterling and FTSE trading places
- EU trade deal reduces chance of another Brexit
A topsy-turvy day in the markets has seen the pound and FTSE trading positions between being in the red and black, highlighting the strong recent correlation. With the FTSE selling off ever since its attempt to break the 7130 all-time high, today’s marginal gains are a welcome break from the sea of red.
The resolution of the EU-Canadian trade deal came as something of a shock for many, with the seven-year negotiations seemingly headed for a Belgian roadblock. What is important about this deal is not what it means for the EU economy but the fact that it provides a blueprint for future trade deals. There is a perception that the EU is incapable of signing off free-trade agreements, but apparently that isn’t the case. Today’s deal will reduce the likeliness of any future Brexits, as the EU proves that it can get all members to agree on something for the good of the group.