Markets had a volatile start to the week on Monday, as political uncertainty and a warning from ratings agency S&P took its toll on the pound and the FTSE.
The pound has remained at the low it dropped to on election night, where it fell by 2 percent after Theresa May failed to win a majority. The pound remains in “limbo” as traders wait to see the outcome of Theresa May’s government talks with the DUP, according to Neil Wilson, an analyst at ETX Capital.
Sterling is currently trading down 0.29 percent against the dollar, and down 0.47 percent against the euro.
The FTSE 100 is currently trading down 0.24 percent at 7509.18. Miner Fresnillo, investment group Scottish Mortgage Investment Trust and software firm Sage Group performed the worst on Monday morning.
S&P warns on UK economy
Markets were also down after ratings agency S&P warned on the outlook for the UK following the election, following similar comments by its rival Moody’s.
Jean-Michel Six, S&P’s chief economist for Europe, the Middle East and Africa, said the “for the time being, the outlook remains negative”.
“This latest bit of instability can only weaken the business environment and consumer confidence,” he said.