Interactive Investor

ii comment: Boris Johnson strikes Brexit deal 

17th October 2019 11:53

Richard Hunter from interactive investor


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With the clock ticking, UK and EU negotiators have agreed a Brexit deal, and UK stocks are flying. 

Commenting on news that the UK has struck a Brexit deal with the EU negotiating team, Richard Hunter, Head of Markets, interactive investor, says:

"It's not all over 'til it's over – reports of an agreed deal has yet to get through European and UK Parliaments and the DUP position remains unclear – but there is no question that this represents progress. 

"Sterling has unsurprisingly strengthened since the announcement, and the domestically-focussed UK stocks which are in the Brexit firing line are also motoring ahead. These are mostly typified by the property/housebuilding and banking sectors, where for example Persimmon (LSE:PSN) shares are ahead by nearly 5%, British Land (LSE:BLND) over 4%, Royal Bank of Scotland (LSE:RBS) 3.5% and Lloyds Banking (LSE:LLOY) 3%.

"It remains to be seen whether the reaction is short-lived as the politicians go toe-to-toe again at the weekend, but in the meantime the very possibility of an agreed outcome to the painful Brexit saga has resulted in a relief rally, both financial and psychological."

FTSE 100 minute by minute chart

Source: TradingView Past performance is not a guide to future performance

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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