Why Lloyds Banking Group Stock Surged Today
Shares of Lloyds Banking Group (NYSE: LYG) jumped more than 12% on Friday, as investors grew more optimistic that a Brexit deal could soon be reached.
The uncertainty of how and when the U.K. will exit the European Union has weighed on the country's economy. The banking sector, in particular, has suffered, as banks have been forced to set aside funds to cover potential losses should a hard exit drive the U.K.'s economy into a tailspin. Brexit will also likely weaken London's position as a major financial center for the region, which could further pressure banks' profits.
Reports on Friday of progress toward a potential Brexit deal that would help support British banks helped to alleviate some of these concerns, and investors cheered the news.
Source Fool.com
