Impressive macroeconomic data and a crude oil recovery saw US equity markets rally across the board as Trump policy uncertainty was made an afterthought for investors. Consumer confidence at a 16 year high helped all 11 sectors close higher on the S&P500, with Financials leading the way, while the Dow Jones snapped its 8-day streak of losing sessions as Apple led risers on the blue-chip index.
As yesterday’s session came to a close, investors were hit with a wave of Brexit nausea, causing the Pound to lose around a cent against the Dollar. Sterling has continued to fret this morning, at one point dropping back below $1.24 for the first time in 8 days. The FTSE, on the other hand, is back to enjoying the pound’s weakness; add into that the Dow Jones’ recovery last night and the UK index has returned to the mid-7300s, its home for much of March, with a 25ish point rise.
Spreadex Analyst, Connor Campbell commented – “In theory, the triggering of Article 50 shouldn’t have any real effect on the pound or the FTSE. When Theresa May’s handwritten letter is delivered to Donald Tusk at midday nothing surprising will happen; it is just the Brexit train, having been given the green light last June, finally leaving the station.”