The Brexit negotiators of the EU had warned that October 17, 2019 summit might be the last opportunity to avoid any further delay to Brexit and economic damage to Britain, leaving without any agreement. Michel Barnier, European Union Chief Brexit negotiator, had informed the EU bloc's other 27 member states on October 16 that legal text of an arrangement was almost completed, but not fully finalised. He had also added that the issues of consent how Northern Ireland Parliamentarians would operate any veto over the new customs system had been resolved in the negotiating room.
However, despite the Brexit talk progress made between the EU and London negotiators on October 16, the Democratic Unionist Party of the Northern Ireland, which props up British Prime Minister's Government, invoked a series of concerns.
In a soothing development to Brexit deadlock on October 17 (Thursday), British Prime Minister Johnson tweeted that; “a great deal with the EU bloc has been secured, that takes back control. The British Parliament, the only hurdle has to approve this on Saturday. Johnson said that once parliament approves it then only, we can move on to other primacies like the NHS, cost of living violent crime and environment.
Meanwhile, the Democratic Unionist Party in a statement said: "We have been involved in ongoing Withdrawal discussion with Government. As things have been projected today, we are not in a situation to back what is being suggested on customs and consent issues, and the clarity on VAT still missing. Though, they expressed their willingness and said that they would continue to work closely with the Government to try and get a workable deal that works for Northern Ireland and holds the economic and constitutional integrity of Great Britain and Northern Ireland.
European Union Commission's President Jean-Claude Juncker expressed his happiness and tweeted “Where there is a will, there is a deal” He said that the deal is finally done and is a fair and balanced agreement for both the EU bloc and the UK. He further said that it’s an evidence to our commitment to finding solutions and vowed the EUCO to approve the deal.
In a letter written by President of EU Commission to the European Council President, Donald Tusk on October 17 stated that: “The negotiators completed a deal on a revised protocol on Ireland/Northern Ireland and on a revised Political Declaration on October 17, 2019. Both were authorised by the European Commission. The British Prime Minister Johnson also gave his nod to these documents. He also added that, as per his indication given earlier, it is high time to finish the withdrawal process and more on, as swiftly as possible, to the negotiations on the European Union’s future alliance with the United Kingdom.
Since last 24 hours, a withdrawal deal seemed galling, only for a range of conflicting comments, contradiction and clarification to make the thing murkier. But on the eve of a crucial summit of European Leaders, all the crucial points summed up for a determination to finally put to an end a Brexit saga, that has been dragging on for more than three years. Both Britain and the European Union Withdrawal negotiators wanted to get this deadlock fixed, despite the disparity that remained, as always in the agreement.
However, it is now up to British lawmakers to approve the deal done with EU bloc and is going to be crucial for the British PM to win the House of Commons approval, where he lacks a majority.
Broader market indices of the UK headed higher post both the side confirmed that they reached an agreement, the broader index of the 100 large corporations by market capitalisation, the FTSE 100 index added 43.01 points or 0.60% to 7,210.96 and touched an intraday high of 7,219.42 and an intraday low of 7,162.04, with PRUDENTIAL PLC (LSE: PRU), BRITISH LAND CO PLC (LSE: BLND), and NEXT PLC (LSE: NXT) being the top risers on the FTSE 100 index, up by 3.15%, 2.48% and 2.40% respectively. However, a reversal in the FTSE100 index was not very strong, as it is still quoting below its 50-day Simple Moving Average Price of 7,237.97 and 12-day Exponential Moving Average Price still quoting below the 26-day Exponential Moving Average Price, indicting not a very optimistic trend.
However, the FTSE 250 gauge of mid-cap stocks listed on the London Bourse added 98.23 points or 0.49% to 20, 289.19 and touched an intraday high of 20,439.86 and an intraday low of 20,075.31 (before the market close at 12:10 PM GMT).
The FTSE All-Share gained 20.20 points or 0.51% and was quoting at 3,982.88 and registering an intraday high and low of 3,992.85 and 3,956.70, respectively.
At the time of writing (as on October 17, 2019, before the market close at 12:15 PM GMT), stocks like CAPITAL & REGIONAL PLC (LSE: CAL), GEORGIA HEALTHCARE GROUP PLC (LSE: GHG) and WH SMITH PLC (LSE: SMWH) are the top-performing stocks on the London bourse and surged by 18.35%, 11.80% and 8.14% respectively.
The broader equity indices across the EU zone were heading higher after Brexit announcement was made public, with the STOXX 600 adding 0.29% to 394.60, Germany’s DAX adding 44.58 points or 0.35% to 12, 712.70, Netherland’s AEX trading 0.03% higher at 577.04.
The British Pound on the October 17 trading session zoomed higher against the greenback (US dollar) and added 0.0044p or 0.34% to 1.2875; however, Eurozone’s EURO traded flat against the British Pound at 1.1585. Meanwhile, the US Dollar Index traded 0.26 cents or 0.27% lower against the basket of six major currencies at 97.74.
In the October 17, market session, the short-term UK’s Government Bond Yield fell sharply, with UK 3M Government Bond Yield plunging 6.43% to 0.692, followed by UK 2-year and 1-year Government bond yield, which also fell sharply by 5.15% and 4.72% to 0.534% and 0.655%, respectively. However, UK 10-year Government Bond Yield added 0.7% to 0.716%. The yield expanded on the US 10-year Treasury as well, which added 1.29% to 1.768%.
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