British PM Theresa May Announced March 2017 Deadline for Brexit
The pound traded half a US cent lower in early Asia on Monday (Oct 3) after British Prime Minister Theresa May said she would trigger the process for the UK to leave the European Union by the end of March.
While investors were pondering the possibility of the occurrence of a settlement to take place between Deutsche Bank and the United States Department of Justice, the Asian stock market increased in profit.
British pound going down somewhat because of Brexit
During this time, the pound experienced a down slide after the kick-starting of the Brexit process on Sunday by British Prime Minister Theresa May. She stated that there would be the introduction of a repeal bill which would deal with the revoking of the 1972 European Communities Act, which is to transpire some time in April or May of next year. This will cause the overturning of the law which enabled Britain to enter into the European Union in the first place.
This situation has created the dashing of hope regarding the scheduling of a second referendum for the UK to be able to stay within the realm of the EU. And there is a time frame set for a period of six months in order for the preparation of negotiations by the UK government, according to a statement presented on Monday by Alex Vijava who is considered to be a senior trader at CMC Markets.
The pound was down in relation to the US dollar as the pound traded at $1.2927 at a time of 2.26 p.m. HK/SIN, though it had reached its lowest point in mid August at a rate of $1.2902.
Negotiations in relation to Brexit will not be an easy journey. There seems to be the idea that likely Europeans will give in by granting a favorable trade deal to Britain, which in reality is not true at all, as declared by Paul Kranke who is the appointed founder of View from the Park.
Australia and the Asian stock markets Gain
Australian Stock Market
In Australia, the ASX 200 finished by being up to 0.78 percent, which is noted to be 42.579 points at a rate of 5,478.5. There was an increase due to the energy subindex that experienced a climb to 1.33 percent, along with the weighty financial sector that increased to 1.17 percent.
Japan Nikkei 225 stock Market
Regarding Japan, the Nikkei 225 increased by 0.9 percent, which is 148.83 points at a rate of 16,598.67, though it seemed that the majority of the sentiments of those within the manufacturing industry had not experienced any change since the preceding quarter.
Hong Kong Hang Seng Stock Market
It was noted that the Hang Seng index in Hong Kong increased by 0.97 percent.
In Malaysia and South Korea, the markets were closed on Monday due to public holidays. Markets in Mainland China were closed for the celebration of Golden Week.