UK/Irish agreement gives ‘glimmer of hope’ to Brexit

Global stockmarkets could receive a short-term boost if the UK and Ireland reach an agreement after UK Prime Minister Boris Johnson and Irish leader Leo Varadkar said there was a ‘pathway to a possible deal’.

At a meeting in England, the two leaders indicated the stalemate over the Irish border could be broken by the end of the month, although they acknowledged challenges remained, by offering to keep Northern Ireland in the single market.

The so-called Irish backstop issue had been a source of frustration throughout the Brexit discussions over how to handle the land border between the Northern Ireland, which would leave the EU, and Ireland, which would remain part of it.

According to financial advisory firm deVere Group, a possible agreement would be positive for markets as it would remove an element of uncertainty caused by a no-deal Brexit.

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“Following the positive tone coming from Johnson and Varadkar on the main point of contention in an orderly exit from the EU, we can expect global stockmarkets and the British pound to experience a short-term boost,” said deVere chief executive Nigel Green.

“There is a growing sense that there’s light at the end of a very dark tunnel. It is now imperative that the leaders of the EU and the UK use this glimmer of hope and move forward to end the paralysis.

“The situation remains highly volatile and investors should remain invested and ensure their portfolios are properly diversified to take advantage of the opportunities and upsides and mitigate risks.”