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Reverse course: stocks, sterling fall as Brexit optimism evaporates

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Last-minute tweaks to Britain's deal to leave the European Union triggered gains across global stocks and propelled sterling higher on Tuesday, ...

LONDON: A rally across global stocks and sterling triggered by last-minute tweaks to Britain's deal to exit the European Union evaporated on Tuesday as comments from the government's top lawyer raised fresh doubts the new terms won't sway lawmakers.

The pan-European STOXX 600 was down 0.2 percent, having rising as much as 0.4 percent earlier, while sterling fell as much as 1.2 percent against the euro, which would have put it on track for its biggest fall since November.AdvertisementSecuring a deal to avoid crashing out of the EU or delaying the process would eliminate one of the three major concerns of global investors, alongside trade and slowing global growth.

"This additional agreement to the existing contract does slightly increase the probability that by tonight the deal will go through, but only slightly increases it," said Britt Weidenbach, head of European equities at DWS.

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