The pound and UK stock market are both trading in positive territory today as PM Theresa May has met European Council President Donald Tusk to discuss Brexit. Mr. Tusk has said that it was a crucial time for both the UK and the EU and that he wants the process to start as soon as possible, telling Mrs. May “the ball is in your court”.
Tusk visits Downing Street
Donald Tusk has been in London this morning with discussions surrounding the UK’s exit from the European union at the top of the agenda. With the leaders of the other 27 EU nations scheduled to meet in Slovakia next week, Mr. Tusk stated that they would discuss the political consequences of Brexit for Europe. The Polish politician was keen to stress that this didn’t mean they would discuss the future relations with the UK in Bratislava, but he did point out that he hoped that the UK would be ready to start the process as soon as possible.
FTSE attempts to recoup losses
After trading in the red for most of the week, the FTSE100 has attempted to rally today and erase its earlier losses. Shares in Micro Focus International (LON:MCRO) have led the way higher, rising by more than 17% to a record high after news broke that Hewlett Packard Enterprise will spin off and merge its non-core software assets with the firm. Airline stocks are also taking off with International Consolidated Airlines and EasyJet gaining around 2.5% on the day. Insurance companies Admiral and Standard Life (LON:SL) are lagging towards the foot of the index alongside supermarkets Tesco (LON:TSCO) and Morrisons.
Oil rises on drastic inventory drop
The price of Oil rose strongly overnight to near its highest levels of the week after the American Petroleum Institute (API) reported a massive drop of 12.1 million barrels in its inventory in the last week. The drawdown was the largest since January 1999, catching the market off guard and a similar reading in this afternoon’s more widely-viewed DOE report could push Brent back above the $50 handle. The reason for such a drastic fall in stockpiles is not totally clear, but there has been some talk that a warning of a strong cyclone off the gulf of Mexico last week may have led to the curbing of output so as to not risk infrastructure damage, with demand being temporarily met by existing inventories.