Theresa makes way, yet future looks cloudier than ever
|Theresa May has just one week left as Prime Minister, yet the prospect of a potential a government led by Boris Johnson does little to boost hope of a market friendly Brexit.
- Stocks closing out the week in positive fashion
- Hope that May’s departure will bring UK-EU agreement seems far fetched
- Johnson promises to stick to October deadline if given the chance
Global markets are looking set to close out the week in relatively bullish fashion, with gains throughout Europe driving upside on the other side of the pond. The US growth story took another hit today, with lower than expected core durable goods orders providing the second disappointment in as many days after yesterday’s worrying PMI figures. However, much of the strength seen in the Europe can be attributed to recent euro and sterling downside, where Brexit linked weakness could help drive the likes of the FTSE 100 higher yet.
Theresa May is heading for the exit door, but any optimism that this is going to make a significant shift towards finding a positive solution to the current deadlock were fleeting at best. Half the party seems to be throwing their hat in the ring to take over as the PM, yet Boris Johnson is the name on everyone’s lips. For the UK to appoint the very man that many blame for the referendum result would do little to encourage the EU from expecting anything other than a hard-Brexit. Johnson’s promise to allow the UK to leave the EU with or without a deal could be exactly the kind of credible threat that could push the EU into shifting their position. However, with the Dutch PM already ruling out any changes to the withdrawal agreement, the appointment of Boris Johnson instead looks like a reason to expect a messy divorce come October.
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