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.
“However, the agreement struck between London and Brussels
is yet to win universal acclaim — even if that is the inevitable result of the
compromises that the Prime Minister had to make to get the deal over the line.”
Elsewhere, Asian markets mostly rose Tuesday following a
record-breaking lead from Wall Street, as investors cheered the passage of a
huge US stimulus bill which has helped temper fears about surging coronavirus
infections.
Investor sentiment was given another shot in the arm after
US President Donald Trump signed a $900-billion (735-billion-euro) Covid-19
economic stimulus bill late on Sunday.
“The hunt for records continues,” said Comdirect analyst
Andreas Lipkow.
Frankfurt’s DAX index also powered its way Tuesday to new
heights, extending its record-breaking run as the market ends a turbulent year
on a strong note.
Asia also scored new pinnacles, with Tokyo soaring 2.7
percent to end at a 30-year high.
European nations meanwhile continue to ramp up vaccinations,
adding to optimism of a route out of the coronavirus pandemic.
Yet governments around the world have been forced to impose
lockdowns and other strict, economically painful measures to contain surging
Covid-19 cases.
Trump had meanwhile held off signing the US virus stimulus
package for almost a week, saying it did not provide enough cash to Americans
and calling for handouts to be jacked up to $2,000 from the $600 offered in the
initial bill.
Democrats agreed more was needed and on Monday the House of
Representatives approved a motion to increase the payments.
Key figures around 1150 GMT:
- London – FTSE 100: UP 2.2 percent at 6,643.19 points
- Frankfurt – DAX 30: UP 0.3 percent at 13,831.72
- Paris – CAC 40: UP 0.4 percent at 5,610.83
- EURO STOXX 50: UP 0.4 percent at 3,589.57
- Tokyo – Nikkei 225: UP 2.7 percent at 27,568.15 (close)
- Hong Kong – Hang Seng: UP 1.0 percent at 26,568.49 (close)
- Shanghai – Composite: DOWN 0.5 percent at 3,379.04 (close)
- New York – Dow: UP 0.7 percent at 30,403.97 (close)
- Pound/dollar: UP at $1.3492 from $1.3452 at 2200 GMT
- Euro/pound: DOWN at 90.80 pence from 90.81 pence
- Euro/dollar: UP at $1.2251 from $1.2216
- Dollar/yen: DOWN at 103.65 yen from 103.81 yen
- West Texas Intermediate: UP 1.3 percent at $48.26 per barrel
- Brent North Sea crude: UP 1.1 percent at $51.50
AFP
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