London, Dec 29 (AFP/APP): London stocks surged Tuesday with investors relieved over Britain’s long-awaited Brexit deal with the EU, while eurozone equities also rose on US stimulus news with Frankfurt extending its record-breaking run.
The British capital’s benchmark FTSE 100 index jumped 2.2 percent in late morning deals, having last traded on Christmas Eve before the announcement of a long-awaited post-Brexit trade deal.
Britain and the European Union finally struck a trade deal Thursday to cushion the economic blow of Brexit, in a major boost to Conservative Prime Minister Boris Johnson.
The pound climbed against the dollar but steadied versus the euro, as dealers continued to digest the 1,246-page agreement document. “The Brexit deal is really a blessing… for the UK and for the FTSE 100 index. There is no doubt that the FTSE 100 has been a laggard index and now is its time to shine,” AvaTrade analyst Naeem Aslam told AFP.
He added: “European stocks are still very much in Santa rally mode and traders only want to push stocks higher because they know that there is enough tailwind for the stock market in 2021.” The EU gave the green light to the deal on Monday, paving the way for it to come into effect in the New Year.
Britain’s parliament will seek to ratify it this week. “Markets seem to be welcoming the Brexit deal,” noted AJ Bell investment director Russ Mould.
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