The FTSE 250, the UK’s stock index of medium-sized firms, hit a six-month high today following the extension of Brexit until 31 October.
Dixons Carphone, WH Smith, Card Factory, and Royal Mail were among the UK-focused companies that saw their shares rise this morning helping the FTSE 250 rise 0.6 per cent shortly before 1pm.
Yesterday Prime Minister Theresa May agreed with the European Union to extend the day Britain leaves the bloc until 31 October, although it could leave earlier if parliament agrees to pass her Brexit deal.
Business has come out forcefully against a no-deal Brexit in recent weeks, which has now been taken off the table. This morning Carolyn Fairbairn, the director of the Confederation of British Industry (CBI) said: “The shock of a no deal frankly would be absolutely enormous.”
The blue-chip FTSE 100 index regained ground after falling this morning. It has risen 0.1 per cent across the day, pushed up by the news that no deal has been kicked down the road, which will hopefully encourage Britons to book holidays.
David Madden, market analyst at CMC Markets, said: “The UK travel sector reacted well to the news that Brexit has been pushed back by six months, as easyJet, International Consolidated Airlines and TUI are some of the biggest gainers on the FTSE 100 this morning.”
European stock markets fared better than their neighbour across the channel. France’s benchmark CAC 40 rose 0.8 per cent by shortly before 1pm, while Germany’s Dax rose 0.4 per cent.