Any boost to sterling if the PM survives is not likely to last | Larry Elliott

Brexit's unresolved problems mean the pound will still be vulnerable even if the PM stays

News that Theresa May was facing a confidence vote from her own MPs broke just before trading began in the City. But those expecting a market meltdown were swiftly proved wrong. Shares had one of their better recent days and the pound rose on the currency markets. If, as the old cliche has it, financial markets react badly to uncertainty it was hard to tell as much.

The upbeat mood in the equity markets was easy to understand. Share prices around the world were higher on hopes of peace breaking out in the trade war between the US and China, and London surfed the same wave as all the other bourses.