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Stocks climb on Brexit deal hopes

Stocks climb on Brexit deal hopes

UK markets have climbed this morning on hopes that prime minister Boris Johnson will confirm a Brexit deal today.

According to FTAdviser’s sister paper the Financial Times the expected deal comes after the two sides reached an agreement yesterday (December 23) on fair competition and fishing rights.

The FTSE 100 was up 0.75 per cent at 8.30am while the FTSE 250 was up 0.61 per cent. Both had climbed shortly after opening before falling back slightly.

The FTSE 250 had already climbed nearly 2 per cent on Wednesday on hopes for a deal, while the blue chip index climbed 0.62 per cent.

The pound meanwhile climbed to $1.36 this morning.

According to the FT, the deal, which is expected to be announced at 10am, preserves tariff-free trade goods between the EU and the UK, but does “little” for the services sector.

British MPs have been told to expect to hold an emergency session in the Commons on December 30 to vote on the deal.

As reported by the FT, officials on both sides said the terms of the post-Brexit relationship were essentially settled.

The paper added that a path to a deal had opened up after European Commission president Ursula von der Leyen and Mr Johnson took personal control of negotiations this week.

As reported by the FT, the draft deal includes a provision for sanctions by way of tariffs if either side seriously undercuts the other’s regulations in areas such as environmental protection.

The post-Brexit transition period is scheduled to end on December 31.

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