Exchanges operate with strong rises after approval of Brexit by the European Union


Brexit and oil monopolized the spotlight last week on the financial markets, and they threaten to repeat the lead in the new week.

Brexit and oil monopolized the spotlight last week on the financial markets, and they threaten to repeat the lead in the new week. In just ten days, oil recorded three sessions with collapses near or greater than 6%. On Friday, it worsened to the 8% margin in the West Texas barrel, a benchmark in the US.

In its collapse, Brent lost $ 60 for the first time in more than a year. The recent surge in supply and fears of an economic slowdown eclipsed OPEC's debate over an imminent decline in supply.

Today, less than two weeks before the OPEC summit that could approve the production cut, Brent's barrel is up 2% to recover to $ 60, while West Texas is bordered by $ 51

For the reaction of the price of crude oil is added the agreement sealed over the weekend at Brexit at the European summit. The pact avoids, at least for the time being, the worst-case scenario, a Brexit without an agreement at European level. The pact, however, must now face the perhaps more complicated revalidation of the British parliament.

The rejection of the Labor party's current agreement and the doubts within Theresa May's party, as was clear from the recent wave of executive resignations, call into question the approval of the agreement. Its effects go further and may even jeopardize the continuity of the May government.

The approval of the European summit to the Brexit agreement gives a minimum truce to the pound price. The British currency is trading at $ 1.28, slightly above its recent lows of $ 1,272 on Nov. 15. The euro also leverages the European agreement on Brexit to bring air and sustain at least $ 1.13.

European stock exchanges today receive less turbulent references from the currency and oil markets, as well as stock benchmarks, with improved futures in Asia and Wall Street. Major European indices begin the week with a solid, stronger rebound in the Italian MIB, slowed by the truce in Italy's risk premium thanks to government suggestions for an adjustment of the deficit to relax tension with Brussels.

On the London Stock Exchange, nearly 1% advances approach the British FTSE from the 7,000 point level. British banks such as Barclays and Standard Chartered stand out in the increases of the London Stock Exchange, once sealed the agreement, in Europe, in the Brexit.

On the Milan Stock Exchange, increases by Italian banks accelerated nearly 3% in the heat of the government's comments in a flash of the deficit to relax the tension with Brussels.

Other exchanges such as Spain's Ibex, Germany's Dax and France's CAC rose more than 1%.


Source link