European markets have followed their counterparts higher, with markets fixated upon the commencement of Brexit negotiations today
• Stocks push higher ahead despite London attack
• Brexit discussions kick-off
• Could single market access still be an option?
Global stock markets have begun the new week in style, with European indices following their Asian counterparts higher despite a terrorist attack in North London. There is a feeling that for the most part, markets are immune to attacks nowadays, with only those that have an impact on international relations, government spending or business making any impact. After a week dominated by central bank interests, this week sees the likes of the Australian, New Zealand and Swiss central banks release their latest policies.
Today marks the beginning of Brexit negotiations, with David Davis and Michel Barnier finally sitting down to begin thrashing out a deal that will dictate economic relations and prosperity in Europe for years to come. Comments from German Foreign Minister Gabriel has indicated that there is a ‘soft Brexit’ route for the UK, yet with free movement of labour required to enable access to the single market, it is clear that many would be left wondering whether this this is even a Brexit at all. The problem is that while the UK voted for Brexit, there is no clear structure of what were the most important elements that the negotiating team should aim to achieve. Certainly from the market’s point
of view, the ability to retain EU market access while allowing the UK to do global deals would be ideal.
Ahead of the open we expect the Dow Jones to open 64 points higher, at 21,448.
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