The UK is on the cusp of a significant change as it prepares to leave the EU's single market and customs union on 1 October. This shift will bring about a new era in trading rules and regulations, with UK markets set to be impacted in the coming weeks and months.
As part of the transition, the UK Government has announced that ops testing will begin ahead of the 1 October deadline. Ops testing is a rigorous process designed to ensure that all systems and processes are functioning correctly in preparation for the new trading environment.
The FTSE 100 index closed at 7,443.93 on Monday, down 0.35% on the day. The index has been volatile in recent weeks, with sterling's value against the US dollar also experiencing significant fluctuations. The pound weakened by 0.5% against the dollar on Monday, closing at 1.3255.
Analysts at Investec said: 'The UK's departure from the EU's single market and customs union will have significant implications for UK investors and pension holders. We expect to see increased volatility in the markets in the coming weeks and months as traders and investors adjust to the new trading environment.'
Other key movers on the FTSE 100 included BP, down 1.2%, and HSBC, down 1.1%. The oil and gas sector has been particularly impacted by the recent decline in oil prices, with BP's shares reflecting this trend.
As the UK enters this new era, it remains to be seen how markets will react to the changing trading rules and regulations. One thing is certain, however, with the UK's departure from the EU's single market and customs union, the country's economic landscape will be forever changed.