Monday 14 October 2019

Shares in Irish banks surge on softer Brexit hopes

Shares in AIB and Bank of Ireland are each up more than 10pc so far today
(stock photo)
Shares in AIB and Bank of Ireland are each up more than 10pc so far today (stock photo)

Donal O’Donovan

Irish bank shares have surged on the prospect of a softer Brexit, along with swings higehr for sterling and Irish government debt.

Shares in AIB and Bank of Ireland are each up more than 10pc so far today, adding more than a billion euro to the two banks’ combined valuations.

Shares have been boosted by the market view that an agreed Brexit is now in propspect following talks on Thursday between Taoiseach Leo Varadkar and British Prime Minister Boris Johnson.

The pound sterling surged Friday to a three-month high on Friday as the prospect of a crash out Brexit on October 31 was seen to lessen.

The pound’s rise since Thursday is the biggest two-day gain since before the Brexit vote in 2016.

On Friday EU Brexit negotiator Michel Barnier said he had had a “constructive” meeting with his British counterpart, Stephen Barclay, following the Varadkar / Johnson meeting.

Versus the euro, the pound strengthened as much as 1.4pc to 87.20 pence.

Online Editors

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