U.K. politics and European stock markets

The United Kingdom held a referendum more than three years ago. Voters had to choose either to leave the European Union or to stay within the EU. The citizens of the U.K. decided to leave the European Union. However, Brexit supporters won this referendum only by 2% more precisely by 1.9%. According to the initial plan, U.K was going to leave EU on March 29. Nevertheless, this did not happen and deadline changed from March to October 31. It means that Brexit is not over yet.

The ongoing situation is affecting the companies in the U.K as well as abroad. The stock market is not an exception. There is a chance that the U.K. might even meet this deadline due to the current political climate in the country. Current Prime Minister Boris Johnson wants to leave the EU by the end of October. However, he has to convince the parliament which is not an easy task.

On Monday, government officials stated that Prime Minister Johnson is ready to ask for elections. This is going to happen if lawmakers will pass the bill to block a no-deal Brexit.

European stock markets on Tuesday

This situation affected the stocks across the European Union. The pan-European STOXX 600 index decreased by 0.26%. The FTSE 100 Index fell by 0.25% to 7263.76. Meanwhile, the German DAX index fell by 0.22% to 11927.50.

French index CAC reduced by 0.44% to 5468.63.

The Shares of a communication satellite owner and operator SES decreased by 7.6%. This happened after CFO Andrew Browne announced that he is going to leave his job.

The French telecoms operator, Iliad’s shares, decreased by 5.6%. The reason why this happened is that 127,000 customers are no longer using Iliad’s services. This became known after the company published the results for the first six months of the year.

The shares of Danish hospital equipment maker Ambu rose by 6.8%.

In less than two months U.K. plans to leave the EU, which will significantly affect the stocks markets in U.K and EU.