Markets show restraint as Brexit comes into being
The markets reacted with a certain sagacity as Article 50 came into being.
European markets moved lower and the pound was hit in early trading, it lost against all major currencies.
However, sterling mounted a comeback and made up all its losses.
The longer term outlook could be more uncertain.
James Hughes is the chief market analyst at GKFX:“A lot of the economic and market risk comes from the fact that this is totally unknown. We don’t know what the outcome is going to be. And it doesn’t matter which politicians tell us, from either the EU side or the UK side, tell us what we expect, or what they expect, or what a deal could mean. We just don’t know what those answers are. And from a market point of view, it’s that uncertainty that causes the issues.”
Second Scottish referendum and new one pound coin by Christian Adams – political cartoon gallery pic.twitter.com/z05F6HR1nT— Political Cartoon (@Cartoon4sale) March 26, 2017
The fact that an EU document omitted any mention of a failure to strike a deal soothed markets.
On such things profit and loss rests.
Brent crude is up to 52.19 from 51.33.
safe haven gold slightly up.