You are here: Home - Investing - Experienced Investor - News -

Shares and sterling rally as Brexit deal announced

0
Written by: Emma Lunn
17/10/2019
A Brexit deal has been agreed between UK and EU negotiating teams ahead of a meeting of European leaders in Brussels.

Prime Minister Boris Johnson has announced the UK has negotiated a deal with which to leave the European Union.

Johnson tweeted: “We’ve got a great new deal that takes back control.”

The fine details of the deal have still to be thrashed out and it will still need the approval of both the UK and European parliaments.

However, the Democratic Unionist Party said it cannot support plans “as things stand”. Johnson will need the support of the Northern Irish party to win Parliament’s approval for the deal in time for the 31 October deadline.

We’ve taken a look at what the deal means for your personal finances.

Investments

Richard Hunter, head of markets at Interactive Investor, pointed out that the deal still needs to get through European and UK Parliaments and the DUP position remains unclear – but conceded it “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 shares are ahead by nearly 5 per cent, British Land over 4 per cent, RBS 3.5 per cent and Lloyds Banking 3 per cent,” he said, “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.”

Property

A no-deal Brexit was widely predicted to be bad news for the property market, following months of a sluggish market with buyers and sellers playing a waiting game. So the fact a deal has been negotiated, if not yet approved, is good news.

Shepherd Ncube, founder and CEO of Springbok Properties, said: “Hallelujah. Against the odds and in the face of doubters, a Brexit deal has now been done and the UK property market can emerge from its dormant state brought about by months of political uncertainty.

“We don’t yet know the detail, of course, however regardless, the property sector will surely begin to breathe again on the basis of some level certainty being restored and this uplift in market activity should see the cogs of positive price growth and transactions start to climb once again.”

Sterling

The pound rallied against the dollar, Euro and other major currencies when it was announced a deal had been reached.

The pound hit a five-month high against the dollar of $1.297 by 10.40am, but fell back slightly after the DUP’s position on Johnson’s deal was made known.

At the time of writing Pound Sterling Live was quoting the pound-to-euro exchange rate at 1.1626, and the pound-to-dollar exchange rate at 1.2928. However, analysts predict an immediate dip if the deal includes an extension to the Brexit deadline.

Related Posts

Tagged:

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • RT @DomWrong: UK avoiding a recession but it will be harder to grow if the rest of the global economy slows according to @ArtBLondon on @Yo
  • RT @HendersonRowe: “Brexit aside, the UK will struggle to expand if the rest of the global economy is slowing down. After a strong July and…
  • RT @HendersonRowe: “Brexit aside, the UK will struggle to expand if the rest of the global economy is slowing down. After a strong July and…

Read previous post:
annuity rate
“Retirement Living Standards” published to help savers picture their future

The Pensions and Lifetime Savings Association (PLSA) says the standards will give people a clearer idea of how much money...

Close