The FTSE 100 dropped 23 points towards the end of the morning session as Moody’s warn a hard Brexit could drag Britain into a recession.
The company’s chief credit officer, Colin Ellis, said: “The precise impact of a ‘no deal’ outcome is impossible to define because both the UK and the EU would likely take swift steps to limit short-term disruption. But it would clearly pose more significant credit challenges than a negotiated exit.”
Brent crude dropped from four-month highs, down 0.58pc at $79.16, as investors focused on the emerging market crises and the damage trade disputes could have, despite tightening demand.
Sterling was trading at $1.3045 against the dollar prior to the Bank of England’s meeting the will likely keep interest rates unchanged following the hike last month.