LONDON: Stock markets advanced on Tuesday on the US Federal Reserve's message it would be"patient" before moving interest rates again, while London equities were hurt by a rally in the British pound on speculation over a possible Brexit delay.
European markets were similarly hit in early trading, but rebounded in afternoon trading as Federal Reserve boss Jerome Powell spoke to US lawmakers. The rebound in equity markets in the past two months has largely been due to the Fed abandoning, in the face of growing concern about global economic growth, a policy that would have seen it continue to raise interest rates this year.Higher interest rates make it more expensive for companies to borrow, so keeping them on pause is positive for stocks.
Adding upside to sterling was the announcement by opposition leader Jeremy Corbyn that his Labour Party would support a second referendum on leaving the bloc if its own plan for Brexit is not approved.
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Europe: Stocks drop as London hit by Brexit delay speculation[LONDON] European stocks fell in initial trade on Tuesday, with London down as the pound rallied on speculation over a possible Brexit delay, dealers said. Read more at The Business Times.
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