Brexit concern rears its head again

Wranglings over the length of the post-Brexit transition period are spooking the UK markets this morning

Wranglings over the length of the post-Brexit transition period are spooking the UK markets this morning and while the FTSE is just about keeping its head above the water the pound has dropped 1% against the dollar and 1.14% against the euro.

The ink on the ballot papers has barely dried off and Boris Johnson is now more assured of his position in 10 Downing Street but a new set of worries about the UK potentially crashing out of the EU without a trade deal is beginning to complicate things. The Prime Minister wants to add a new clause to the Brexit bill that would limit the transition period to the end of 2020 and would make it impossible to extend the period for up to two years, which is what the current agreement with the EU stipulates. But this could create a situation in which the UK would leave the EU without a trade deal and would be in a far more vulnerable position going forward. Investors are voting with their feet, selling off the most UK-focused stocks such as property firms and local banks.

Oil rallies, helps oil stocks higher

Oil prices have a new bounce in their step helped by the prospect of the Sino-US trade deal and OPEC’s recent decision to cut production for the next six months. Brent crude prices have risen above $65 helping the likes of Shell and BP, oil stocks which pushing to the top of the FTSE gainers this morning. Mining companies and utilities are also gaining ground.

Related Articles

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.