Easing hopes prop up global stocks, pound sags as Britain eyes new PM

TOKYO - Expectations of policy easing by major central banks such as the Federal Reserve propped up global stocks on Tuesday, while the pound sagged as Britain braced for a new prime minister who could pave the way for a no-deal exit from the European Union.

European stocks had also nudged higher on Monday with the European Central Bank seen cutting rates by 10 basis points on Thursday.“The likelihood of easing by the Fed is supportive for equity markets, but the probability of a 25 basis point rate cut has already been factored in for the most part,” said Soichiro Monji, senior strategist at Sumitomo Mitsui DS Asset Management.

Sterling was under pressure due to the likelihood of eurosceptic Boris Johnson becoming Britain’s next prime minister.

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