Monday, 13th November: We have started the week on a bitter note, which had pushed the sterling down by 0.78% to $1.3087 during the morning, but pushed the FTSE up at the open by 0.42% to 7464.37. Pressure on the pound rose when the news emerged over the weekend of a reported 40 members of parliament who have agreed to sign a letter on no-confidence in Theresa May. Since the start of the Brexit palaver to this date, GBP/USD has dropped more than 10%, and GBP/EUR has dropped more than 14%.
While the FTSE made gains, poor earnings across European stocks put pressure on the corresponding indexes. The DAX, CAC 40 and STOXX 600, were trading down 0.52%, 0.44% and 0.48% respectively at around mid-day GMT. Utility giant EDF was at the foot of the STOXX 600 during early hours, trading down more than 12% at one point in the afternoon post the release of their trading update which revealed lower 2018 earnings and cash flows compared to the previous guidance.
In the world of cryptocurrency, Bitcoin has bounced back today after taking a hit last week. After peaking at a record high of almost $7,900 on Wednesday, it only took a few days for it to drastically drop by around 30% to $5,555 at one point in the second half of the week. The drop was allegedly caused by plans to abandon a software upgrade called “Segwit2x” which was expected to have a positive impact on the digital coins, which is why the displacement of the plans caused the cryptocurrency to suffer. Traders bought back into Bitcoin on Monday, which allowed it to regain more than 14% as it reaches $6,718.
By the end of the day, the FTSE had reversed the gains it made at the open and was down 0.24% at 7415.18.