Lloyds share price soars on hopes of a Brexit deal

The bank’s shares climbed more than 16% last week after the British Prime Minister Boris Johnson met his Irish counterpart Leo Varadkar, renewing hope for a Brexit deal breakthrough.

Lloyds saw its share price close 16% higher last week, coming close to breaking through 60p levels, with investors growing optimistic about the prospect of Britain securing a last-minute Brexit deal.

British Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar met last Thursday, renewing hope that the UK will reach an agreement with the EU before October 31.

UK banks lifted by prospect of new Brexit deal

Lloyds wasn’t the only British lender to see its stock soar after a new surge of Brexit optimism.

Barclays and the Royal Bank of Scotland (RBS) both saw their shares climb 8% and 12% respectively following the news.

For many years, British lenders have seen their share prices weighed down by fines, increased regulation, an excess of bad loans on their balance sheets and a prolonged low-interest rate environment.

But the possibility of Britain finally leaving the EU with a deal has helped relieve some of the downward pressure on UK lenders’ shares, with further gains likely if a deal is reached in the weeks ahead.

Thinking of going long Lloyds, Barclays and RBS? Open a live or demo account with IG

Brexit: Deal or no-deal

Over the next six days, investors expect to get some clarity over whether a Brexit deal is achievable by October 31, or if another extension is required which will likely delay Britain’s departure date to January 2020.

Despite talks in Brussels over the weekend between the UK and EU negotiating teams, the bloc’s chief negotiator Michel Barnier said that a ‘big gap’ remains over customs arrangements.

How much progress, if any, the two sides have made in securing a Brexit deal will be made clear after the EU summit concludes on Friday.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Trading around Brexit

Find out how the UK’s exit from the EU continues to affect traders, and discover:

  • The unique opportunities in a ‘hard’ and ‘soft’ Brexit
  • The markets you should be watching
  • Everything that’s happened so far

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.