Brexit Resignation Hat-Trick In 24 Hours

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Monday, 9th July: The blue-chip index opened comfortably higher on Monday morning, around 0.19%, at an attempt to turn a blind eye to trade headlines which dominated the news last week. With only a handful of stocks in red territory, Hargreaves Lansdown and BP were at the very bottom, both roughly 0.56% lower. The top five stocks in the morning included the likes of; Antofagasta, Just Eat, Melrose Industries, BHP Billiton and International Consolidated Airlines. However, the market is likely to remain on edge in case trade talks begin to shake things up again.

David Davis, Brexit secretary, has left his position in yet another blow to Theresa May which occurred late last night and has expressed that he cannot back a policy he doesn’t believe in. Although his resignation suggests that he and May aren’t seeing eye to eye, he also took the time to state that he still supports her and considers her a good prime minister who he will not stand against. After dropping out with only eight to nine months left before Britain leaves the EU, I’m not sure whether May will be willing to accept any praise from Davis, particularly seeing as his resignation spurred on others to walk away too, including Brexit department minister Steve Baker.

The most shocking member to resign though, was Boris Johnson, whose departure was revealed after mid-day on Monday, further weakening the position of May and securing a hat-trick by becoming the third individual to walk out in 24 hours, we had to throw a football reference in somewhere. Davis was swiftly replaced by a leading pro-Brexit campaigner named Dominic Raab but Johnson’s replacement remains unconfirmed.

Following the news of Davis’ departure, pound sterling managed to remain somewhat steady, but the news of Johnsons departure sent it lower by c.0.2% to $1.3259, which in turn had a positive impact on markets. The FTSE 100 rocketed on the news and was up more than 1.00% in the late afternoon, and finally ended the day 0.92% higher at 7687.99.

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