Easing worries over political risk in Britain and Italy helped stocks rise on We...
MILAN - Easing worries over political risk in Britain and Italy helped stocks rise on Wednesday with the pound bouncing from three-year lows after a parliamentary vote raised the prospect of another delay to Brexit.
British lawmakers defeated Boris Johnson on Tuesday in a bid to prevent him taking Britain out of the European Union without a divorce agreement, prompting the prime minister to announce that he would immediately push for a snap election. “The road from here is likely to be very tricky, especially if PM Boris Johnson takes the path toward a snap election,” said Hussein Sayed, Chief Market Strategist at FXTM.
The index lost ground on Tuesday after data showed the U.S. manufacturing sector contracted in August for the first time since 2016, a reading that in turn has cemented expectations of further policy easing by the Federal Reserve. “The next hurdle for the government will be the confidence vote in Parliament. But at the moment risks appear limited,” said Giuseppe Sersale, fund manager at Anthilia Capital.
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