LONDON —UK and European stock markets were totally flat on Thursday, the day after Prime Minister Theresa May triggered Article 50 of the Lisbon Treaty and formally began the process to take Britain out of the EU.
But the pound rallied after a weak day on Wednesday and oil popped after lower than expected US oil inventories.
"After all the fuss about the UK triggering Article 50 yesterday, and opposition to PM May’s attempt to link a trade deal with security, focus has reverted to central bank policy outlook," Michael van Dulken, head of research at Accendo Markets, said in an email.
"This after media reports the ECB is concerned about misinterpretation of its last message (not hawkish it says), and how it is now reluctant to change its message end-April for fear of adding fuel to the fires of misunderstanding. Note also some optimism about the US administration trying another go at the Healthcare bill next week," he said.
The FTSE 100 closed down 0.06%, or 4.22 points, at 7,369.50. Here's the chart: The pound made some gains against the euro, meanwhile, after falling against the currency on Wednesday. The pound is up 0.81% against the euro to €1.1644 at close to 5.00 p.m. BST (12.00 p.m. ET). Here's how it looks:
The pound is also up against the dollar, 0.40% better at $1.2484.
Oil also made big gains, up 1.7% on Thursday after reports US production is lower than expected.
"US Government EIA Inventory data showed a lower than expected build, while accompanying metrics (Distillates, Gasoline) showed a larger than expected drawdown," van Dulken said.
"Global benchmark Brent Crude is now approaching resistance at $52.70 as the rally from last Monday’s lows continues, while the US benchmark looks to regain a $50 per barrel handle for the first time since 16 March."
And here's the chart:
