FTSE follows US lower on impeachment threat

Fiona Cincotta
By :  ,  Market Analyst
The FTSE is sliding this morning taking its cue from US and Asian stocks, which were hit by the prospect of President Trump being impeached. The markets had already started sliding following Trump’s speech to the UN late Tuesday in which he criticized China and said he wouldn’t accept a bad deal. The impeachment news pushed US stocks and stock futures further into the red.

On the FTSE TUI slipped more than 5% after two days of strong rises as it became clear that the fallout from the demise of Thomas Cook will affect Europe’s biggest tour operator too. TUI had to cancel holidays using Thomas Cook Airlines all the way until the end of October and is struggling to find alternatives as there is a shortage of planes caused by the worldwide grounding of Boeing 737 Max.

Pound slides amid anger at PM

The pound is weaker, but considering the political turmoil in the UK is doing well to hold the 1.244 level against the dollar. Boris Johnson has been forced to cut his stay in New York short to fly back to Britain and deal with calls for his resignation after the UK’s Supreme Court ruled that his decision to prorogue Parliament was unlawful. This opens the possibility of another wrangle for the Conservative Party leadership that brought Johnson into this position and for the pound this would stave off the possibility of a no-deal Brexit in October, giving it temporarily some breathing space.

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