Reuters Insider - Sterling, stocks jump on Brexit deal agreement

Baader Bank AG

17/10/2019 16:44

Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=0_oth8gyqb&referenceId=tag:reuters.com,2019:newsml_OVB1HQNWR_930&pageId=ReutersNews
Source: Reuters Insider

Description: Sterling surged and European stocks jumped after British Prime
Minister Boris Johnson and EU officials said a Brexit deal was done. David
Pollard reports.
Short Link: https://tmsnrt.rs/2VPA4tq

Video Transcript:

Britain's Brexit deal isn't in the bag yet. Prime Minister Boris Johnson still
needs to get the approval of Parliament. But try telling that to Europe's
markets. Thursday's EU-UK agreement in Brussels drove Sterling up a full
percent and shares to a year and a half peak, as investors reversed out of
safe havens, including bonds. Yields across Europe surged as bunds, gilts, and
others sold off. Baader Bank's Robert Halver- 

The danger of a no-deal on October 31 on Halloween is definitely off. In an
emergency, there will be a Brexit extension. But overall, Europe is happy
again. 

The move in Pound battered since Britain's EU referendum three years ago took
it to a 6% gain over the last six days. If it holds, that would be a 30-year
record. The UK is scheduled to leave the EU on October 31. But on the 19th
comes an extraordinary session of Parliament to give its backing to Johnson's
proposed new deal. Or, if the votes don't stack up, possible not. Bill Blain
of Shard Capital is one analyst who says the Pound could yet give back some of
those gains. 

There's not really enough time for Parliament to debate it properly and agree
what goes through. So the only thing I can say with any certainty on Brexit is
it's going to remain very uncertain. 

But with the Euro too enjoying the surge on Thursday, it rallied to its
highest in nearly two months against the Dollar. Traders appear willing for
now to give it the benefit of the doubt