Time is running out for the U.K. as well as for the European Union leaders. The Brexit took longer than expected, and it may not be over even by the end of this month. It is worth mentioning that more than three years after the referendum, the U.K. was not able to leave the bloc. The first deadline was in March 2019, but then it was extended to October 31. The threat of no-deal Brexit is harmful to the European as well as global stocks.
At the moment, there is a risk that parliament will demand another extension as less than two weeks are left before the deadline. The Parliament of the U.K even passed the European Union Withdrawal Act.
It means that the Prime Minister of the United Kingdom should ask for another extension in case of an unsuccessful negotiation process. According to this act, if there no agreement before October 19, Prime Minister will have to ask for the third extension.
The crucial EU summit starts on Wednesday. There was a hope that the U.K. and EU may reach an agreement by that time. Leaders have only several hours to finalize all the details before the summit.
European stock markets on October 16
The saga of Brexit became one of the most debated issues not only in the U.K. but in other countries as well. Even after three years, this topic continues to affect the U.K. and European stocks in general. The EU’s second-largest economy is trying to leave the EU, and this whole process is full of mutual accusations and problems. All of the factors combined created additional problems for the stock markets.
The pan-European 600 index fell by 0.2% to 393.29. The German DAX added 0.52% to 12551.16.
The French CAC 40 increased by 0.55% to 5674.22. At the same time, the U.K.’s FTSE 100 dropped 0.5% to 7209.96.
The ongoing situation of the stock market reflects the case in 2016 when people voted for Brexit. The margin was tiny and today is the same with stock markets as uncertainty is harmful to the stability of the market.