Financial markets brace for volatile week as Brexit uncertainty continues

Pound rallies in early trading in Asia but sterling and equities remain vulnerable

City investors are bracing for a volatile week after Boris Johnson and Ursula von der Leyen stepped back from the brink of a no-deal Brexit.

The decision to “go the extra mile” and continue talks beyond the weekend removed the immediate threat of UK-EU trade talks collapsing on Sunday, which hit stocks and the pound hard on Friday.