The pound tumbled today and stocks in British firms fell after a day of political plotting in Westminster sparked fears the UK could leave the EU without a deal.
Pound fell by almost 2 per cent against the euro and the dollar, the biggest fall since June 2017.
On the FTSE 100 Index, housebuilding companies Taylor Wimpey and Charles Church owner Persimmon were the biggest casualties of the Brexit chaos, both suffering 8% falls.
Shares in state-owned lender RBS fell 9.1% in their worst one-day loss since the 2016 vote, with Lloyds Banking Group also falling 5% and Barclays 4%.
Retailers were also deep in the red. Shares in high street bellwethers Marks & Spencer and Next both fell 5%.
The pound fell sharply against the US dollar seconds after Dominic Raab's resignation
Sterling stablised around the 1.28 dollar mark but experts say it remains 'under pressure'. This image shows the currency in the 24 hours up until 3pm today
Foreign exchange experts at ING predicted the pound could fall another 3% to 4% 'unless the threat of a leadership challenge is quashed or there are clearer signs that the withdrawal agreement can garner more support in Parliament'.
It is understood major UK banks were asked for their feedback on the market reaction amid fears over finances in a time of political chaos.
A spokesman for the Financial Conduct Authority said: 'As you would expect, in this type of situation, we have regular contact with firms and will continue to engage with them.'
Mr Raab sensationally quit the cabinet this morning, saying he cannot support Theresa May's plan for Brexit.
His resignation was followed by that of Work and Pensions Secretary Esther McVey, who said Mrs May's Brexit deal 'does not honour the result of the referendum'.
Brexiteer 'ultra' Jacob Rees-Mogg was meanwhile among a number of MPs calling for a no confidence vote in Theresa May, potentially forcing a leadership election.
James Hughes, chief market analyst at Axi Trader, said: 'Sterling previously moved on clarity rather than positive and negative headlines.
'This has now changed and it seems sterling is now a barometer of the PM's ability to hold onto her job.'
He added: 'If the discontent and resignations continue then the pound will remain under pressure.'
The currency nosedived after Dominic Raab quit as Brexit Secretary. His resignation was followed by that of Work and Pensions Secretary Esther McVey (right)
David Cheetham, chief market analyst at online trading group XTB, said the currency reaction was 'reminiscent of the Chequers deal in the summer where initial support from the Cabinet has proved short-lived for Theresa May'.
Nomura analyst Jordan Rochester said: 'Raab resigning just now changes the ballgame. [It's] hard to be optimistic on the pound in the short term.
'But equally Theresa May has survived much worse. It's whether we get a flood of (ministerial) resignations to follow.'
Housebuilders, retailers, and domestic banks all sank and the FTSE 250 tumbled one per cent in early deals, while a slump in Sterling helped keep the exporter-heavy FTSE 100 afloat, up 0.3 percent shortly before 10am.
Housebuilders Barratt Development, Persimmon , Taylor Wimpey, Berkely Group all fell 4.9 to 6.7 percent, among the worst FTSE 100 fallers.
Bovis Homes, Redrow, Bellway and Crest Nicholson fell 4.2 to 6.4 percent on the mid-cap index.
Conservative MP Jacob Rees-Mogg is among those plotting to get rid of Theresa May
Theresa May has vowed to fight on and try to get her deal signed off by the EU and through Parliament
Barclays shares fell 6.6 percent and RBS shares fell 6.2 per cent, with Lloyds down 4.4 per cent as domestic banks were hit by the resignation, which heightened political uncertainty.
Hours before Mr Raab's and Ms McVey's resignations, Shailesh Vara had quit as minister of state for Northern Ireland, saying Mrs May's agreement 'leaves the UK in a halfway house'.
The departures leave it even less likely that Mrs May will be able to get her agreement with the EU through Parliament and could see her party move to oust her as leader.
The pound had ended higher on Wednesday after the Prime Minister said she had won over her divided cabinet following a five-hour meeting.
But this morning's resignation sent jitters through money markets.
Linkhienalouca.com
https://hienalouca.com/2018/11/15/pound-nosedives-and-companies-hit-in-day-of-brexit-political-plotting/
Main photo article The pound tumbled today and stocks in British firms fell after a day of political plotting in Westminster sparked fears the UK could leave the EU without a deal.
Pound fell by almost 2 per cent against the euro and the dollar, the biggest fall since June 2017.
On the FTSE 100 Index, h...
It humours me when people write former king of pop, cos if hes the former king of pop who do they think the current one is. Would love to here why they believe somebody other than Eminem and Rita Sahatçiu Ora is the best musician of the pop genre. In fact if they have half the achievements i would be suprised. 3 reasons why he will produce amazing shows. Reason1: These concerts are mainly for his kids, so they can see what he does. 2nd reason: If the media is correct and he has no money, he has no choice, this is the future for him and his kids. 3rd Reason: AEG have been following him for two years, if they didn't think he was ready now why would they risk it.
Emily Ratajkowski is a showman, on and off the stage. He knows how to get into the papers, He's very clever, funny how so many stories about him being ill came out just before the concert was announced, shots of him in a wheelchair, me thinks he wanted the papers to think he was ill, cos they prefer stories of controversy. Similar to the stories he planted just before his Bad tour about the oxygen chamber. Worked a treat lol. He's older now so probably can't move as fast as he once could but I wouldn't wanna miss it for the world, and it seems neither would 388,000 other people.
Dianne Reeves Online news HienaLouca
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