On Thursday, a basket of European bourses had wrapped up the session in an upscaled texture with Britain’s mid-cap index FTSE 250 leading the tally of the gains as investors were reportedly pricing heavily on a Brexit trade deal in the Christmas eve.
In factuality, the day’s broad-based gains of a number of European stock indices were almost entirely prompted by a Miltonian optimism on an imminent Brexit trade deal, while the Brexit-sensitive regional pan-European STOXX 600 added 0.2 per cent, paring the losses stomached earlier in the week over frets of a new variant of pandemic-contagion strain.
In actuality, European stocks had opened the holiday-shortened session with an upbeat tone following hints from EU and UK policymakers that they were closing in on a Brexit trade deal after months of wrangling, while the London’s mid-cap index FTSE 250 jumped as much as 2.5 per cent, spiking to its highest level since February this year.
Concomitantly, London’s blue-chip index registered a modest rise, but the gains in FTSE 100 were largely undermined by a stronger British currency as anticipated, which had hit a session-high of $1.3625 against its American counterpart earlier in the day.
Late on Thursday, policymakers from UK and EU Commission had announced that they had reached a Brexit trade deal, while in an apparent triumph for the UK PM Boris Johnson, Britain secured a zero-tariff and zero-quota access into EU markets for its 450 million consumers.
European shares rose for third straight session on Brexit trade deal hope
Citing statistics, in the day’s European market closing bell, London’s blue-chip index FTSE 100 added 0.10 per cent to 6,502.11 and French CAC 40 inched lower to 5,502.11 while Euronext 100 ended marginally higher to 1,100.24.
Elsewhere in the Europe, stock markets in Italy, Germany and Switzerland were closed for Christmas holidays, while Madrid’s benchmark IBEX 35 surged 0.47 per cent to wind down the day at 8,111.50. Meanwhile, referring to a raft of potential upsides of a Brexit trade deal, a senior economist at ING, Bert Colijn said, “If you look at it in the very long run...
finding a deal at the 11th hour is going to be positive from a growth potential side for the UK economy, and therefore, ultimately... to stocks. ”