Europe closes mostly lower after pound drops
Most stock exchanges in Europe were in the negative territory at the close on Monday after the British pound fell in the morning to its weakest point ever against the United States dollar. Fears that the new government's economic package announced last week may lead to even higher interest rate hikes by the Bank of England and further harm the United Kingdom economy possibly resulted in the yield on the benchmark 10-year gilt reaching a 12-year high.
The DAX lost 0.46% at the close as RWE dropped 3.36%. The FTSE 100 was flat at the end of trading. The CAC 40 in Paris closed 0.24% lower with Veolia falling 3.19%.
The euro was 0.46% lower than the dollar at 5:29 pm CET, trading at 0.96448. The pound was down 0.30% compared to the American currency, going for 1.08226 at the same time.