Britain's Brexit Trigger Looms Large over Global Markets

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European and Asian stock markets mostly rose Wednesday but gains were tempered by caution as Britain readies to trigger Brexit, dealers said.

London opened 0.4-percent higher but swiftly ran out of steam to trade flat nearing midday in the British capital and ahead of the formal delivery of the British government's Brexit letter to the EU.

Nine months since the shock British vote to leave the European Union, Prime Minister Theresa May will activate Article 50 of the Lisbon Treaty, meaning Britain is set to leave the bloc in 2019.

She will formally announce that she has triggered the departure process to parliament at 1130 GMT.

"Traders are likely a little cautious ahead of the Brexit trigger," noted Oanda analyst Craig Erlam.

In the eurozone, Frankfurt and Paris stock markets held in positive territory, buoyed by Wall Street's overnight rally.

The pound -- considered a barometer for market concerns over Brexit -- wobbled against the dollar.

Financial markets have largely priced in Brexit after the nation's surprise June 2016 referendum verdict.

"The Brexit trigger was pretty well flagged -- people knew that it was going to happen," said Manulife Asset Management analyst Will Hamlyn.

News that May had already signed the Brexit letter sent the pound lower in earlier Asian trade. The official notification will today be delivered to EU president Donald Tusk.

- 'The countdown begins today' -Hamlyn played down the prospect of Brexit-driven volatility for markets in the immediate future.

"I do not think there is potential for more volatility today, but I do think there is potential for more volatility on a more medium term basis -- and I think you will see that volatility in the currency," he said.

"The countdown begins today. We are going to have a period of time where markets are going to be watching like a hawk the negotiations stances coming out of both sides, and they are going to be playing sterling up and down on the basis of that," Hamlyn added.

Wall Street stole a march on Wednesday after a strong US consumer confidence survey underlined optimism over the health of the world's biggest economy.

The Dow snapped an eight-day losing streak, with a bounce in oil prices also providing support.

After more than a week of negativity, US traders finally saw a broad advance across equities and in the greenback as figures showed American shoppers were growing increasingly upbeat.

News that the consumer confidence index had hit a 16-year high helped soothe worries that President Donald Trump's economy-boosting agenda could have been thrown off the rails by the collapse of his healthcare bill.

Friday's debacle over repealing Obamacare hammered world markets on speculation the tycoon would not be able to ram through promised tax cuts and infrastructure spending.

Investors were meanwhile snapping up bargain shares in both Asia and Europe, with valuations cheap relative to the United States, noted Hamlyn. 

- Key figures at 1000 GMT -London - FTSE 100: FLAT at 7,343.42 points

Frankfurt - DAX 30: UP 0.4 percent at 12,199.74

Paris - CAC 40: UP 0.1 percent at 5,051.26

EURO STOXX 50: UP 0.2 percent at 3,470.64

Tokyo - Nikkei 225: UP 0.1 percent at 19,217.48 (close)

Hong Kong - Hang Seng: UP 0.2 percent at 24,392.05 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,241.31 (close)

New York - Dow: UP 0.7 percent at 20,701.50 (close)

Euro/dollar: DOWN at $1.0785 from $1.0812

Pound/dollar: DOWN at $1.2442 from $1.2448

Dollar/yen: DOWN at 110.98 yen from 111.14 yen

Oil - Brent North Sea: UP 39 cents at $51.72 per barrel

Oil - West Texas Intermediate: UP 30 cents at $48.67 

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