Lloyds share price soars on hopes of a Brexit deal
The bank’s shares climbed more than 16% last week after the British Prime Minister Boris Johnson met his Irish counterpart Leo Varadkar, renewing hope for a Brexit deal breakthrough.
Lloyds saw its share price close 16% higher last week, coming close to breaking through 60p levels, with investors growing optimistic about the prospect of Britain securing a last-minute Brexit deal.
British Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar met last Thursday, renewing hope that the UK will reach an agreement with the EU before October 31.
UK banks lifted by prospect of new Brexit deal
Lloyds wasn’t the only British lender to see its stock soar after a new surge of Brexit optimism.
Barclays and the Royal Bank of Scotland (RBS) both saw their shares climb 8% and 12% respectively following the news.
For many years, British lenders have seen their share prices weighed down by fines, increased regulation, an excess of bad loans on their balance sheets and a prolonged low-interest rate environment.
But the possibility of Britain finally leaving the EU with a deal has helped relieve some of the downward pressure on UK lenders’ shares, with further gains likely if a deal is reached in the weeks ahead.
Thinking of going long Lloyds, Barclays and RBS? Open a live or demo account with IG
Brexit: Deal or no-deal
Over the next six days, investors expect to get some clarity over whether a Brexit deal is achievable by October 31, or if another extension is required which will likely delay Britain’s departure date to January 2020.
Despite talks in Brussels over the weekend between the UK and EU negotiating teams, the bloc’s chief negotiator Michel Barnier said that a ‘big gap’ remains over customs arrangements.
How much progress, if any, the two sides have made in securing a Brexit deal will be made clear after the EU summit concludes on Friday.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Trading around Brexit
Find out how the UK’s exit from the EU continues to affect traders, and discover:
- The unique opportunities in a ‘hard’ and ‘soft’ Brexit
- The markets you should be watching
- Everything that’s happened so far
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
