Stormy sterling sinks again, stocks wilt before Fed

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Brewing no-deal Brexit worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock ...

LONDON: Brewing no-deal Brexit worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock markets wilted before what is expected to be the first cut in U.S. rates since the financial crisis.

Options markets were pointing to more pain too. Three-month implied volatility, a contract that expires just before the Oct. 31 Brexit deadline, jumped to over 11 vols, the highest since before March 29, the original date for Britain to leave the European Union. European shares slipped as grim forecasts from German chemicals and drugs giant Bayer and airline Lufthansa soured sentiment, although the weakness of the pound kept London's blue-chip FTSE index just about out of the red.

Australian stocks stole the glory again though with another record high, as buoyant mining shares added to tech-driven gains the previous day.

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