PM resignation adds to markets’ Euro worries
THE MARKETS seemed to lose some of their enthusiasm for the Euro bailout package this morning as traders also digested the latest political twists in the UK following Thursday’s inconclusive general election results.
The Euro opened at $1.2687 – down from $1.2804 in late New York trading on Monday. Asian stocks fell following yesterday’s rally triggered by news of the £750m Euro rescue package.
The FTSE opend more than 1% down at 5322.23
After a day of further talks between the Lib Dems and the Tories, the Prime Minister yesterday announced he was stepping down in a clear move to encourage Nick Clegg’s negotiation team to pick up the pace with Labour.
Standing on the steps of Number 10, Gordon Brown spoke just minutes after the markets closed at 5pm, and effectively punctured the emerging expectation that David Cameron was edging ever closer to Number 10. Traders and analysts through the day had been focussed on the situation in Greece and the wider EU, with many assuming a Tory-LibDem agreement was only hours away from delivering a stable UK government.
The opening of trading this morning was being closely monitored for signs of how the financial markets would react to yesterday’s political roller coaster.
Lib Dem sources told the BBC that a resolution was expected ‘within the next 24 hours’.
