Brexit deadline extended by up to six months
Market focus is largely attuned to Brexit developments, after talks between EU leaders and British Prime Minister Theresa May culminated in a “flexible extension” of the U.K.’s departure from the bloc until Oct. 31.
Donald Tusk, president of the European Council, said this development provides extra time for the “U.K. to find the best possible solution.”
On Wednesday, European and U.S. banks reinforced investor worries about slowing global economic growth and trade protectionism.
The European Central Bank (ECB) kept its loose monetary policy stance and warned that threats to world economic growth remained. The central bank has already delayed its first post-crisis interest rate hike and President Mario Draghi raised the prospect of further supportive policy measures if a slowdown in the euro zone economy persisted.
Meanwhile, minutes from the latest meeting of policymakers at the Federal Reserve showed they had agreed to be patient about any changes to interest rate policy.