Business
Europe markets take Brexit in their stride
Europe markets take Brexit in their stride
March 29, 2017 | 10:06 PM
European stock markets posted modest gains yesterday as Britain triggered the two-year process to quit the European Union, investors already having largely priced in “Brexit” since last year’s referendum, dealers said.Meanwhile on the other side of the Atlantic, the Wall Street was fractionally weaker, as investors appeared to be all but oblivious to the so-called “Article 50” divorce proceedings.Across Europe, London’s FTSE 100 rose 0.4 % to close at 7,373.72; Frankfurt’s DAX 30 was up 0.4% at 12,203.00, while Paris’ CAC 40 edged 0.5 % up at 5,069.04.The looming split between London and Brussels following last June’s shock Brexit referendum has divided Britain and thrown the future of the 28-nation bloc into question.“We had been waiting nine months, and when it came it was not with a bang but with a whimper,” said Manulife Asset Management analyst Will Hamlyn.“The real event to watch is April 4 and April 29, when we get the EU’s declaration on Brexit and an EU summit on Brexit,” said City Index analyst Kathleen Brooks. “The polite opening to negotiations has helped suppress volatility and limit market reaction.”European markets barely flinched when the British ambassador to the EU formally handed over the historic letter announcing Britain’s intention to leave the bloc.Nine months after the shock British vote to quit the EU, Prime Minister Theresa May formally activated Article 50 of the Lisbon Treaty, meaning Britain is set to leave the bloc in 2019.The pound - considered a barometer for market concerns over Brexit - wobbled against the dollar, having enjoyed a brief spike just after May pulled the Brexit trigger.It’s business as usual. It’s been pretty muted,” said David Papier, head of sales at ETX Capital.“People have known about the trigger of Article 50 for months now, so people have been positioned accordingly and it looks like everything has been priced in. It certainly hasn’t shown the volatility that we saw over Brexit (vote) or the US election,” he told AFP.“Once the terms of Brexit, once the costs of Brexit become clear, and once these trade deals have some clarity around them in terms of renegotiation, we might see some more volatility in the market.”The Wall Street was slightly softer approaching midday in New York as investors paused for breath following the previous day’s gains on the back of a strong US consumer confidence survey.News that the consumer confidence index had hit a 16-year high went some way towards soothing worries that President Donald Trump’s economy-boosting agenda will be thrown off the rails by the collapse of his healthcare bill.
March 29, 2017 | 10:06 PM