UK Stocks React Positively to Long Awaited Brexit Deal
On the first trading day since a post-Brexit trade deal was agreed between the EU and the UK, Tuesday morning saw UK shares rally following in the footsteps of the European markets yesterday.
At the time of writing, the FTSE100 was up over 2% compared to its closing price on Christmas Eve, the last trading day before the festive break. This gain sees the blue-chip index hit highs not seen since the 5 March and points to a strong end to a tumultuous year for the equity markets.
The UK markets closed at lunchtime on 24 December, before the much anticipated trade deal was formally announced by both sides.
Aztrazeneca provided one of the largest boosts to the FTSE100 with share price rising 4.4% amidst the expectation that approval of the company’s coronavirus vaccine is fairly imminent in the UK.
Despite the positive news coming out of the stock markets, GBPUSD has failed to hit its previous highs of 1.36 last week, instead falling below 1.35. This potentially reflects the news that the UK-EU trade deal does not cover financial services, the UK’s largest export, and the uncertainty this will bring as we enter the new year.
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