AFP, London :
European and Asian stock markets mostly rose Wednesday but gains were tempered by caution as Britain readies to trigger Brexit, dealers said.
London opened 0.4-percent higher but swiftly ran out of steam to trade flat nearing midday in the British capital and ahead of the formal delivery of the British government’s Brexit letter to the EU.
Nine months since the shock British vote to leave the European Union, Prime Minister Theresa May will activate Article 50 of the Lisbon Treaty, meaning Britain is set to leave the bloc in 2019.
She will formally announce that she has triggered the departure process to parliament at 1130 GMT.
“Traders are likely a little cautious ahead of the Brexit trigger,” noted Oanda analyst Craig Erlam.
In the eurozone, Frankfurt and Paris stock markets held in positive territory, buoyed by Wall Street’s overnight rally.
The pound-considered a barometer for market concerns over Brexit-wobbled against the dollar.
Financial markets have largely priced in Brexit after the nation’s surprise June 2016 referendum verdict.
“The Brexit trigger was pretty well flagged-people knew that it was going to happen,” said Manulife Asset Management analyst Will Hamlyn.
News that May had already signed the Brexit letter sent the pound lower in earlier Asian trade. The official notification will today be delivered to EU president Donald Tusk.
‘The countdown begins today’ -Hamlyn played down the prospect of Brexit-driven volatility for markets in the immediate future.
“I do not think there is potential for more volatility today, but I do think there is potential for more volatility on a more medium term basis-and I think you will see that volatility in the currency,” he said. “The countdown begins today. We are going to have a period of time where markets are going to be watching like a hawk the negotiations stances coming out of both sides.
European and Asian stock markets mostly rose Wednesday but gains were tempered by caution as Britain readies to trigger Brexit, dealers said.
London opened 0.4-percent higher but swiftly ran out of steam to trade flat nearing midday in the British capital and ahead of the formal delivery of the British government’s Brexit letter to the EU.
Nine months since the shock British vote to leave the European Union, Prime Minister Theresa May will activate Article 50 of the Lisbon Treaty, meaning Britain is set to leave the bloc in 2019.
She will formally announce that she has triggered the departure process to parliament at 1130 GMT.
“Traders are likely a little cautious ahead of the Brexit trigger,” noted Oanda analyst Craig Erlam.
In the eurozone, Frankfurt and Paris stock markets held in positive territory, buoyed by Wall Street’s overnight rally.
The pound-considered a barometer for market concerns over Brexit-wobbled against the dollar.
Financial markets have largely priced in Brexit after the nation’s surprise June 2016 referendum verdict.
“The Brexit trigger was pretty well flagged-people knew that it was going to happen,” said Manulife Asset Management analyst Will Hamlyn.
News that May had already signed the Brexit letter sent the pound lower in earlier Asian trade. The official notification will today be delivered to EU president Donald Tusk.
‘The countdown begins today’ -Hamlyn played down the prospect of Brexit-driven volatility for markets in the immediate future.
“I do not think there is potential for more volatility today, but I do think there is potential for more volatility on a more medium term basis-and I think you will see that volatility in the currency,” he said. “The countdown begins today. We are going to have a period of time where markets are going to be watching like a hawk the negotiations stances coming out of both sides.
