Britain’s biggest banks have reportedly been summoned for a call with City regulators over market turbulence after Government Brexit resignations sent the pound and stocks tumbling.
The pound has plummeted after shock ministerial resignations dealt a blow to Theresa’s May’s Brexit deal, and is set to remain under pressure as Cabinet support proves short-lived.
The FTSE 100 ended in the red on Tuesday as fears over the standoff between Italy and the EU spooked traders across Europe.
Output in Britain’s dominant services sector slumped to a seven-month low in October as Brexit uncertainty continues to drag on the economy.
Brussels and Downing Street have played down speculation about a breakthrough in Brexit talks.
Output in Britain’s manufacturing sector slumped to its lowest level for more than two years in October as Brexit, trade tensions and weak demand for cars conspired to leave factories reeling.
The pound has rallied following speculation a Brexit deal could safeguard the City’s access to European Union markets.
The FTSE 100 began the week on the front foot on Monday, but the pound came under late selling pressure as the Chancellor delivered his Budget.
The FTSE 100 failed to hold on to its early gains on Friday, sliding back into the red.
The FTSE 100 was back in positive territory on Friday as global stock markets tentatively recovered from a widespread sell-off.