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Market Commentary—28/11/18

November 28, 2018 / Hamza Ahsan

World markets closed shining green. S&P 500 and Dow closed at 0.33 percent and a 0.44 percent high, respectively. The Hang Seng Index closed 1.33 percent high while FTSE 100 showed stability staying up by only 0.02 percent.

Prime Minister Theresa May’s Brexit plan will make people worse off and may result in 4 percent hit to GDP, than if the UK remained in the EU, the government’s own assessment of the agreement.

Italian banks have increased their holdings of government debt by the largest amount since the early days of the country’s bond market sell-off nearly six months ago, in the latest sign that the eurozone ‘doom loop’ is still going strong.

The pound reached a session high with investors shrugging off a government report showing Brexit may deal a £100bn annual blow to the economy over the next 15 years, although it remained in its established trading range between $1.27 and just over $1.28, adding 0.4 percent to $1.2795. Sterling rallied 0.57 percent against the euro to €1.1344.

Coca-Cola fizzes on FTSE as it becomes FTSE 100’s biggest gainer after UBS upgraded the bottler from “sell” to “buy”. According to UBS, Investors have become cynical about organic sales growth from the staple goods producers as it can be distorted by inflationary pricing in emerging markets.