No Deal Brexit Possibility Sinks Pound, Boosting Stocks

The first EU budget at 27In the current budgetary framework, the UK has been the main net contributor after Germany

Adam Vettese (eToro) | London-listed stocks rallied yesterday as the pound sank, after Prime Minister Boris Johnson said that the UK will walk away from Brexit negotiations if a deal is not reached by mid-October. Talks with European Union officials are set to continue this week. The pound fell from around the $1.33 mark down to $1.31 following the news; it started the month at $1.35. Only three names in the FTSE 100 were in the red on Monday, with the index up 2.4% overall. British Airways parent International Consolidated Airlines Group sank 4.7%, ahead of CEO Willie Walsh handing over the top seat to Iberia CEO Luis Gallego yesterday. At the top of the index, last week’s biggest gainer Melrose Industries continued to lead the way, closing out Monday 5.8% higher.