Businesses and financial markets breathed a sigh of relief as the Brexit deal was announced in the final hours of negotiations. With analysts predicting a crash in shares in the event of a no deal Brexit, the news was encouraging as the period of uncertainty looks to come to an end.
The announcement was met with an immediate jump of 2% for the FTSE 250, giving a much needed boost to the finances of investors. The pound has experienced a 0.7% gain against the US dollar and 0.5% against the Euro.
You may wonder what this movement means for you. For investors, market movements are critical, and whilst investing is a long term initiative, and you should expect some volatility in the market, the uncertainty surrounding Brexit has had many investors on edge. However, this news also affects anyone who has pension savings invested by their pension scheme. The value of many saving pots will be directly affected by the Brexit news.
The vaccine has also had a positive impact on the British economy, promising a return to normality and keeping more people gainfully employed as we move away from strict social distancing. Another piece of good news is that the change to household expenditure is expected to be very modest under the terms of the deal struck between the UK and the EU. As Boris Johnson confirms tariff free trade between the UK and the EU, the only thing affecting the cost of shopping for UK households is the slight increase in administration for customs, however, Tesco have assured consumers that this increase will be negligible.
This is positive news for investors, for anyone in possession of a pension, and for UK households. Once the vaccine has been rolled out we should start to see a return to normality.