Sterling jumped on Tuesday, while Asian stock markets rose slightly. The European Commission has agreed to amend the British withdrawal agreement, which will be voted on by the British Parliament later.
European Commission President Juncker and British Prime Minister Theresa May agreed Monday to amend the withdrawal agreement. Juncker agreed to provide additional guarantees to Britain, but warned British parliamentarians that they would not get a third chance to vote on the agreement.
Before Teresa May's talks with Junker, the pound had risen a wave, and now it continues to rise, with expectations that the agreement will be adjusted enough to persuade resistant members of the British Parliament, who threatened to veto the agreement proposed by Teresa May again on Tuesday.
The pound rose 0.5% to $1.3215, up more than 1.5% in the past two days.
Greg McKenna, strategist at McKenna Macro, said that the possibility of Britain's disorderly exit from Europe without an agreement was expected to inject some bullish atmosphere into the stock market, as it relieved one of the three major concerns of global investors, the other two being trade issues and the slowdown in global economic growth.
"After the resolution of the issue of Britain's withdrawal from Europe, I think some of the real capital flows that began to emerge last week will reappear. So I think it's helpful to change the background a little bit.
The MSCI Mingsheng Asia-Pacific (excluding Japan) index rose 1.08%, after gains were supported by rising shares of Chinese stock markets and oil companies.
Hot Model No.: