Markets bet Britain will withdraw no-deal Brexit threat

Hopes that UK Prime Minister Theresa May could clinch a last-minute deal with the EU boosted sterling against the euro, as markets continued to predict that any Brexit involving Britain crashing out at the end of the month was most unlikely.

The pound rose 1% to 85.74 pence and UK shares indices which are closely tied to the British economy held up well, despite the political uncertainty surrounding Ms May’s deal in the Commons and the potential votes in subsequent days this week.