Christmas Cheer From Both Sides of the Atlantic
The Christmas break saw good news for the financial markets emerging from both sides of the Atlantic.
Firstly, on 24 December, after months of negotiations and speculation, an agreement was reached between London and Brussels regarding their future trading relationship once Britain ends its transitional period at the end of the year.
Although there were compromises on major sticking points, including the much talked about fisheries, both sides claimed a victory. British businesses, in particular, which have relied on free trade with the EU for several decades will be enormously relieved that an agreement was reached.
Also, late on Sunday evening, US President Donald Trump signed into law the $2.3 trillion covid relief bill, which he had labelled a “disgrace” last week fuelling speculation that he would try to block it.
Although this bill will provide much needed relief, many economists agree that the financial aid within the bill should be larger to help the stuttering economy get going again.
The DAX30 responded to both pieces of news positively on Monday morning and, at the time of writing, was trading over 1% higher than its closing price on 23 December, at one point reaching an historic high. The British markets remain closed today for the Boxing Day bank holiday.
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