Why Webjet and Clydesdale Bank shares are climbing on Brexit relief

A hard Brexit may be off the table in the UK.

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This afternoon two businesses from within the S&P/ ASX200 (ASX: XJO) index that have some of the biggest exposure to the Brexit disruption in the United Kingdom were among the best performers on the benchmark index.

The Webjet Limited (ASX: WEB) share price closed 3% higher to $15.75, despite it releasing no specific news to the market, with Clydesdale & Yorkshire Bank (ASX: CYB) closing 2.9% higher at $3.87 despite no specific news as well.

Investors are probably bidding the shares higher on the back of news that the UK parliament voted in favour (early Thursday morning AEST) of legislation requiring its prime minister to seek a long extension of the new timeline for the UK's proposed exit from the EU.

Effectively this means the UK may not leave the EU at all, or may leave on 'soft' terms that see it remain a member of a customs union.

Any of these options would be good for Webjet as a travel operator with heavy exposure to consumer confidence in the UK via its bookings website and recent deal to take much of the hotel inventory of UK travel giant Thomas Cook.

Clydesdale & Yorkshire Bank meanwhile is a regional lender in the country's competitive banking sector. It's vulnerable to any disruption from a hard Brexit and likely to receive buying support if the UK avoids a 'no deal' scenario.

Motley Fool contributor Tom Richardson owns shares of Webjet Ltd. The Motley Fool Australia has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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