sterling plagued by Brexit turmoil
Market focus is largely attuned to global trade developments, after Trump said talks between the world’s two largest economies were ongoing and he would not raise tariffs on Chinese products until he was sure about a deal.
In an interview with Reuters on Tuesday, Trump also said he would intervene in the Justice Department’s case against a top executive at Chinese telecoms giant Huawei if it would help serve national security interests or help U.S.-Sino trade talks.
Trump’s comments on a potential deal with China supported gains in global equity markets after several days of losses, with MSCI’s broadest index of Asia-Pacific shares, excluding Japan, rising 1.2 percent on Wednesday.
Back in Europe, overall sentiment remained fragile amid deepening political turmoil in the U.K. It comes amid reports Conservative lawmakers could vote on a no confidence motion in May’s leadership as soon as late Wednesday.
The reports emerged less than 24 hours after May postponed parliamentary vote on her Brexit deal, saying defeat was all but certain.
Sterling hovered around 1.2499 against the U.S. dollar at around 6:35 a.m. London time, having shed almost 2 percent so far this trading week.