Sterling still hovering around 89p

Sterling has steadied (for now) after last week’s fall against the euro as it continues to trade in and around the 89p level.  It is a bit more choppy against the dollar and is currently trading at about $1.28. The euro has lost ground against the US currency and is almost a cent off  its recent high at just under $1.14 this morning.

Tory rebel Jacob Rees-Mogg is putting pressure on his colleagues to oust Theresa May –  saying it’s a case of “now or never” to do so – suggesting there’s still a struggle going on to get the required numbers to force a vote of confidence in her leadership. If May survives and manages to get the Brexit deal through parliament, with a transition period kicking in next year, it would be positive for the UK economy according to Bank of England Governor Mark Carney in remarks, though he noted that the chances of a “no deal” exit are “uncomfortably high”

It was more of the same for equity markets yesterday with the US leading stocks lower again. The S&P 500 shed around 2% and is now just 2% off its 2018 low set back in February (which followed a sharp sell-off back then as well) having fallen by around 10% since climbing to an all-time high in September this year

Oil prices have fallen further – Brent crude, at around $63 per barrel, is now down almost $25 since early October –  with President Trump praising Saudi Arabia for being “responsive to my requests to keep oil prices at reasonable levels”. The latter has talked of boosting output to cap prices, but maybe it should be careful what it wishes for!

The European Commission will give its formal assessment of Italy ‘s budget – and any action to be taken – later this morning. The OECD publishes its latest economic outlook today as well, while on the data front, jobless claims and capital good orders are due in the US