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The optimism of global markets is returning after the request for delaying Brexit to 2020

21 Oct 2019 11:47 AM

The biggest concern of the world markets over the past two days was the Brexit developments and the British House of Commons rejected the deal Prime Minister Boris Johnson offered to the EU. 322 members voted in favor of rejecting the deal and forcing Johnson to apply to the European Union to extend the exit agreement to January 2020, compared to only 306 members approved the current exit deal.
After Johnson refused to apply for a postponement and asked either to approve the current deal or exit without an agreement, which caused the uncertainty to rise and the sterling fell in the beginning of the weekly trading to 1.2870 levels, sterling pushed strongly to the highest level since May 13 after a text Prime Minister Ehud Olmert's speech to the European Union to formally demand an extension of the exit until the end of January 2020. Optimism has returned to the investor minds about the decline in the prospects of exit without an agreement that may harm the global economy as a whole Ba on developments Albraikst while stressed out that without agreement had Aaa to a slowdown in the growth of the British economy from 3% to 3.5%.
Also, it should be noted that many major currencies have benefited greatly from the decline of the US dollar in preparation for the US Federal Reserve meeting on October 31, which increased the likelihood of the Bank's decision to cut interest rates again on the back of continued disappointing data in the manufacturing sector, services, and retail sales. The dollar index remains stable near the lows of 96.87.
Turning to equity developments, Coca-Cola shares rose sharply on Friday after the company reported a 8% quarterly profit to $ 9.5 billion, versus expectations of $ 9.4 billion as Coca-Cola Zero sales increased. Prices rose to a high of $ 55.35 before returning to 54.80.
Twitter is scheduled to announce its quarterly earnings next Thursday. Shares have risen 35% since the start of the year, but have fallen slightly in the last four weeks. But the company expects its third-quarter profit to increase by $ 0.1 from $ 0.12 in the same period last year. The company remains optimistic about the upcoming period as it intends to increase its projects and benefit from the start of the Olympic Games, where prices are expected to return to 40.72 levels and then $ 42.20.