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Sterling, UK stocks fall on report that Brexit talks risk collapse

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Sterling, UK stocks fall on report that Brexit talks risk collapse
A bank employee counts pound notes at Kasikornbank in Bangkok, Thailand, October 12, 2010. REUTERS/Sukree Sukplang/Files   -   Copyright  Sukree Sukplang(Reuters)
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LONDON (Reuters) – Britain’s currency weakened further on Wednesday while stocks in London extended their losses, following a report that talks to reach a Brexit deal with the European Union are near to collapse.

According to a report from Bloomberg, the Brexit negotiations risk collapse due to resistance from the Democratic Unionist Party, a northern Irish party on which the British government relies on for support in parliament.

Britain’s Brexit Minister Stephen Barclay said the government had submitted draft texts for a political declaration with the EU, Reuters reported.

Sterling hit the day’s low of $1.2655 and was last trading at $1.2703, down 0.6% on the day. It was 0.6% weaker against the euro at 86.79 pence.

Shares in London-listed companies that make most of their cash at home extended losses after the headline. A basket of domestically focussed UK companies briefly hit a day low, down more than 2% and was down 1.7% at 0916 GMT. The FTSE 250 was down 0.9%.

British government bond futures extended gains by around 20 ticks to stand 70 ticks higher in the day, with the December contract briefly touching a session high.

(Reporting by the London Markets Team; Editing by Tommy Wilkes)

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