Pound Gets On Expected Brexit Trade Deal

The pound leapt Thursday, while European stock markets were little changed, with Britain and the EU finally anticipated to reveal a post-Brexit trade deal.

Sterling was up around half a percent versus the dollar and euro as London’s FTSE 100 stocks index closed up 0.1 percent in reduced pre-Christmas trading.

In the eurozone, the Paris CAC 40 index completed with a loss of 0.1 percent. Frankfurt was closed.

Traders said early gains were capped by increasing fears over a new strain of the coronavirus that has forced the UK to impose tougher regional lockdowns across the country.

Asian stock markets earlier closed combined.

Hong Kong completed higher however was weighed down by a fall of more than eight percent in Alibaba shares after China stated it had launched a probe into the e-commerce giant for “believed monopolistic practices”.

In other places, oil costs were down around 1.0 percent.

The pound was the main focus of attention as Britain and the European Union hammered out the last information of a post-Brexit trade deal set to be announced later Thursday.

The front pages of a number of British papers had already proclaimed success for Prime Minister Boris Johnson in the mission for a pact however in Brussels work continued.

” The statement by Santa-Boris comes in the nick of time,” Oanda analyst Jeffrey Halley said in a note to customers.

” Still, it leaves the UK isolated worldwide due to Covid-19, thousands of trucks marooned on each side of the English Channel and follows more of England’s areas being moved into a tough … lockdown.”

Countless truckers sustained Christmas Eve stranded near a significant British port, captured in the turmoil unleashed by the brand-new coronavirus stress.

Nevertheless European countries on Wednesday began reducing travel restrictions on Britain that had actually been enforced over the stress– which UK officials believe spreads much faster.

Equity gains remain constrained by ongoing issues about the rise in infection infections around the globe that are forcing governments to impose fresh containment measures, balancing out wish for the rollout of vaccines.

Analysts on the other hand said that while United States President Donald Trump’s outburst versus a $900-billion stimulus contract was holding up aid for American families, the basic consensus is that a bundle will become passed, and potentially with more money handouts.

The pound and stocks have rallied on expectations Britain and the European Union will soon announce a post-Brexit trade offer AFP/ JUSTIN TALLIS

London – FTSE 100: UP 0.1 percent at 6,502.11 points (close).

Paris – CAC 40: DOWN 0.1 percent at 5,522.01 (close).

EURO STOXX 50: UP 0.1 percent at 3,543.28 (close).

Tokyo – Nikkei 225: UP 0.5 percent at 26,668.35 (close).

Hong Kong – Hang Seng: UP 0.2 percent at 26,386.56 (close).

Shanghai – Composite: DOWN 0.6 percent at 3,363.11 (close).

New York – Dow: UP 0.4 percent at 30,129.83 (close Wednesday).

Pound/dollar: UP at $1.3564 from $1.3515 Wednesday.

Euro/pound: DOWN at 89.85 pence from 90.16 pence.

Euro/dollar: UP at $1.2191 from $1.2185.

Dollar/yen: UP at 103.63 yen from 103.53 yen.

West Texas Intermediate: DOWN 0.9 percent at $47.68 per barrel.

Brent North Sea crude: DOWN 0.9 percent at $50.75 per barrel

Check Also

‘It’s All We Have’: The Predicament Of S.Africa’s Informal Miners

Darkness enveloped an obsolete mine in South Africa’s Mpumalanga province as a pick-up truck left …