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Stock markets to climb as Brexit deal reached

Stock markets

The euro Stoxx index was around 8pc higher before the close after London and Brussels signed a deal

Irish and UK stock markets are expected to jump this morning on the first day of trading since the Christmas Eve post-Brexit trade deal was secured. They will also get a boost after US President Donald Trump finally signed off on a $2.3tn pandemic aid and spending package.

Germany’s DAX hit a record high in early trading yesterday, spurred by optimism over the trade deal, while other bourses including those in Spain, Italy, France all showed gains.

A number of Irish-listed companies including CRH, Smurfit Kappa, DCC, UDG Healthcare, Kingspan and Irish Ferries owner Irish Continental will be among those likely to get a lift this morning.

Dublin and London markets were among the only ones closed in Europe yesterday.

Germany’s blue-chip DAX index was trading 1.54pc higher by lunchtime yesterday, with shares in all bar one of its 30 constituents showing advances.

The euro Stoxx index was just over 8pc higher a couple of hours before the close in the first trading session after London and Brussels signed an eleventh-hour deal on Thursday evening that preserves zero tariff access to each other’s markets.

We can finally move on from the Brexit drama, said Win Thin, global head of currency strategy at Brown Brothers Harriman.

After the last-minute deal was struck last week, the UK parliament will vote on the deal on Wednesday. With Labour promising its support, it should pass handily, he added.

Trading volumes are expected to be slim in the final week of the year, with stock markets being shut on Friday for the New Year holiday.

Airline shares were among the top gainers as the payroll aid is expected to provide some relief to the battered sector.

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