Sterling and Irish bank shares hit by increased risk of no-deal Brexit

Sterling and European shares fell as the risk of the UK accidentally dropping out of the EU without a deal increased, as European Council President Donald Tusk told Theresa May she can have a short Brexit delay but only if the deal is voted through by the UK parliament next week.

Sterling fell 0.6% against the dollar and traded at around 86 pence against the euro. Shares in the three Irish stock market-listed banks fell sharply, with AIB down by 3.5%.