European shares likely to open mixed as pound plunges on Brexit divide
European stocks may open on a mixed note Friday after the pound suffered its biggest one-day loss against the euro since October 2016 amid a deepening crisis for UK Prime Minister Theresa May.
Four ministers, including Brexit Minister Dominic Raab resigned on Thursday in protest against her draft Brexit agreement, but May insisted that Brexit meant making “the right choices, not the easy ones”.
Asian markets were trading mixed Friday, as hopes of a thawing in relations between the world’s two largest economies offset disappointing results from US chipmaker Nvidia Corp.
Safe-haven assets such as gold and the Japanese yen strengthened, while oil rose on expectations of supply cuts from OPEC.
Overnight, US stocks rose sharply to snap a five-day losing streak, as oil rose for the second straight session and the US and China stepped up efforts to resolve trade issues at the G20 summit later this month.
The Dow Jones Industrial Average rose 0.8%, the tech-heavy Nasdaq Composite rallied 1.7% and the S&P 500 added 1.1%.
European markets finished Thursday’s session mostly lower. The pan-European Stoxx Europe 600 index shed 1.1%. The German DAX fell half a percent and France’s CAC 40 declined 0.7% while the UK’s FTSE 100 benefited from weakness in the pound to end 0.1% higher.
Source: Morningstar
Read also: Brexit draft deal: The key points explained
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