Markets await their Christmas present: the Brexit agreement

December 24, 2020 14:00

This week has seen a rally in European stock exchanges awaiting the official confirmation of the Brexit agreement finally becoming a reality. This comes five years after the referendum in which the British voted for the United Kingdom to leave the EU, and after months of disputes, both parties seem to have reached an agreement regarding their new commercial relations as of January first. 

Banks are among the stocks with the greatest gains on the London Stock Exchange this morning, namely Lloyds with +4.8% and Barclays with +3.4%. Major European indices and financial institutions also saw some of the highest increases, such as Deutsche Bank with +2.4%, Banco Santander with +1.6%, and Credit Agricole with +1%. 

The deal has also pushed the British pound higher. At 12 o'clock in the morning, the GBP/USD rose 0.82%, and broke the barrier of $ 1.3600, in a two and a half year high.

Source: Admiral Markets MetaTrader 5. GBPUSD daily chart. Data range: from October 3, 2018, to December 24, 2020. Prepared on December 24, 2020, at 11:20 am CET. Keep in mind that past returns do not guarantee future returns.

 

Wall Street indices mostly closed higher, and futures point to a green opening today, in which the stock markets will close earlier than usual for the celebration of Christmas Eve.

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