Tue, 23rd Apr 2019
The FTSE 100 ended the day lower on Monday, as the Brexit chaos raged on. In the US, Wall Street shares were also struggling, as there was little good news to spur a recovery.
The UK’s leading index ended the day down by around 56 points, to sit at 6,721, while the FTSE 250 dropped by 351 points, to sit at 17,492. The Brexit fiasco is dragging on, with Theresa May opting to postpone a parliamentary vote due to take place today, as it appeared certain that she would suffer defeat.
The pound fell to a 17 month low, as uncertainty continued about the possibility of any progression in the Brexit plans. The Irish backstop has proven to be the most significant obstacle to support, and the PM is hoping that she will eventually receive assurances that it will not remain a problem indefinitely.
Theresa May expects that reaching an agreement over the backstop would help her to win over more support. However, much of the opposition is hoping to shift power in a general election, or to bring about a new leadership bid.
The weak pound would traditionally provide support for the index but it was not enough to offset other issues. Yesterday the pound dropped to its lowest level of the year, at $1.2660 against the dollar. While blue chips were supported by this, the uncertainty of Theresa May’s position in the government has dominated the headlines, and was enough to offset any positivity in the markets.