Pound rallies, stocks slip on UK Supreme Court ruling

LONDON (Reuters) - Sterling extended gains on Tuesday while eurozone stocks tumbled after Britain's Supreme Court ruled that British Prime Minister Boris Johnson had acted unlawfully when he advised Queen Elizabeth to suspend Parliament this month.

The British currency gained as much as nearly 0.5% on the day to $1.2491 after the ruling while stocks <.FTSE> tumbled on the back of a stronger pound. Against the euro , the pound rose 0.3% on the day to 88.06 pence.

British gilt yields rose following the decision, dragging safe-haven German bond yields higher.

British government bond futures fell to a session low of 133.12, down 60 ticks on the day, while 10-year gilt yields rose 3 basis points on the day to 0.585%.

"This is a win for the pro-remain side and suggests it will be harder for the government to push a no-deal brexit before the end of October," said Chris Graham, senior economist at Standard Chartered Bank in London.

London's blue-chip FTSE 100 <.FTSE> hit its day low as sterling rallied after the ruling. A JPMorgan's index tracking UK stocks <.JPDEUKDM>> that make their revenue at home hit their day highs on the news.

(Reporting by London Markets Team; Writing by Saikat Chatterjee; Editing by Dhara Ranasinghe)

Must Read

Japan's economy slows to snail's pace as exports falter

Aug 15, 2016

Japan's economy slows in the April-June quarter, as weaker exports and business investment weigh on the faltering recovery of the world's third-largest economy

US home construction climbed to a 6-month high in July

Aug 16, 2016

US home construction climbed to a 6-month high in July, led by a jump in apartment buildings

Bolt advances, Russian qualifies and an engagement at track

Aug 17, 2016

The midpoint of the nine-day track and field program at Olympic Stadium was a day for diamond rings and making friends, a rare Russian hello and a surprising Brazilian farewell

Search

Obserworld delivers the most accurate and up-to-date world news for the global audience with a thorough research and in-depth interviews. Discover the world through Obserworld.

Contact us: sales[at]obserworld.com