Aug 24, 2016 (LBO) – U.K. retail sales data have posted a positive outcome post-Brexit supporting markets even though some political uncertainty remains.
From the FTSE’s low of 5,806 points immediately after the Brexit vote, the index has rallied some 18.38 percent. Other European indexes and the STOXX 600 have also recovered, with the STOXX 600 up 8.7 percent since its lowest point on Friday, June 24, CNBC reported.
Two months on, analysts say markets have recovered with a focus back on economic momentum.
Sterling has not been as successful with the Bank of England’s decision to cut interest rates and launch more bond buying having a negative impact. Still, the pound hit a three-week high against the dollar early Tuesday, reaching $1.3203.
U.K. citizens now wonder when the newly appointed prime minister, Theresa May will invoke Article 50.
A government lawyer stated in July that Theresa May didn’t intend to trigger it before the end of 2016, according to Reuters. On top of that, trade agreements and political negotiations with EU members and Scotland have yet to be fully finalized.
The Scottish National Party is calling for the Conservatives to outline their ‘Brexit vision’, saying the party hasn’t done enough to clarify its negotiating stance, since the vote to leave in June.
The new U.K. government has been created in less than a month since the vote despite former leader David Cameron saying he expected a replacement by October.
Analysts say while Brexit’s uncertainty still remains a big factor in politics and for central banks, it seems investors are moving onto other market-moving topics like oil and when the Federal Reserve will choose to raise interest rates.
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