Brexit Rumours Of City Deal Boost FTSE


Unconfirmed speculation that Britain has reached a Brexit deal with the European Union over financial services have boosted the markets.

The FTSE has risen along with the Pound on the news.

But a government source played down the rumours, saying the report was optimistic.

City firms say the deal may not be sustainable if the agreement is based on ‘equivalence’.

Equivalence is the EU term for trading with a third party country following European rules and standards.

Brussels can withdraw the privilege at any time.

Prime Minister Theresa May wants the City and financial firms to continue doing business with the EU as they do now.

House prices stagnate

UK house prices remain unchanged for two months in a row, according to building society and mortgage lender Nationwide.

Year-on-year, the 1.6% increase was the lowest annual change for more than five years.

Robert Gardner, the society’s chief economist, said that the squeeze on household budgets and economic uncertainty had resulted in a relatively subdued housing market.

This was the result of homeowners failing to move on to another property. Many looking for more space may choose to extend or improve their current home instead.

US markets hit high

US stocks hit five-year high as fund managers around the world pumped cash into equities.

Funds are confident recent price drops were a correction and not the end of a bull market.

“This volatility may continue to year-end, but a full reversion to a bear market trend is something different and in our view the configuration that is opening up before us has more to do with a correction,” said Pascal Blanqué, group CIO of Amundi. “The bear checklist is not yet flashing red.”

World stock markets

Exchange% changeValueMovement
FTSE 1000.32%7151.0422.94
FTSE 2501.47%19194.84227.16
New York
Dow Jones0.97%25115.76241.12
BSE Sensex-0.03%34431.97-10.08
Hong Kong
Shanghai Composite1.02%2,568.0525.94

Source: Reuters

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