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Bloomberg
UK blue-chip stocks soared on Tuesday, leading European country indexes, in the British market’s first trading session since a Brexit deal was struck with the European Union.
The FTSE 100 Index jumped 1.6%, with stocks most exposed to the British economy, like homebuilders and travel stocks, pushing the advance. EU ambassadors have given the green light to the draft free-trade agreement with the UK, paving the way for formal approval on Tuesday.
The Stoxx Europe 600 Index was up 0.8% by 8:13 am London time, with risk assets more broadly boosted after US President Donald Trump signed a virus relief bill.
Among individual movers, offshore wind park developer Orsted rise as much as 0.2% after agreeing to sell a stake in a Taiwan farm in $2.7 billion deal.
Although the pandemic and lockdowns have weighed on European stocks this year,
equities have continued their recovery on positive vaccine developments, with the Stoxx 600 gauge heading for a gain of 3.1% in December.
Comdirect Bank strategist Andreas Lipkow said that, shortly after the Christmas holidays, the more hopeful outlook for the U.S. economic recovery next year could continue to further lift equities.
“It remains fascinating whether stock markets can use more momentum or whether they will suffer from potential profit taking, as the end-of-year rally has already pushed many stocks toward new records and some investors could be tempted to take some money of the table,†Lipkow said in an email.