The FTSE 100 and European stocks were higher as UK prime minister Rishi Sunak is set to sign a new Brexit deal with the EU on Monday after face-to-face talks with the European Commission president Ursula von der Leyen.
The FTSE 100 (^FTSE) rose 0.76% to 7,938 points at the open, while the CAC 40 (^FCHI) in Paris climbed 1.01% to 7,259 points. In Germany, the DAX (^GDAXI) advanced 1.17% to 15,387.
Rishi Sunak will hold face-to-face talks with the European Commission president Ursula von der Leyen this Monday afternoon as he looks to finalise a compromise deal to fix issues with the Northern Ireland Protocol.
In a joint statement from Downing Street and the Commission, they confirmed the prime minister and president would meet in the UK to discuss the “complex challenges” in the Brexit treaty.
It comes amid growing expectation a deal could be announced imminently, with deputy PM Dominic Raab saying Sunak was “on the cusp” of striking an agreement, leaving investors optimistic.
FTSE 100: British Airways owner IAG returns to profit on strong demand and pricier tickets
Meanwhile, Primark owner Associated British Foods (ABF.L) shares were up by 2% after it said consumer spending remains “resilient”, adding that full year expectations have improved with adjusted operating profit and earnings per share now expected to be broadly in line with the previous financial year.
Outsourcing specialist Bunzl (BNZL.L) was up by 2.36% as it held guidance for 2023 after reporting strong growth in revenue and profit in 2022 alongside two more bolt-on acquisitions in Germany and Canada.
Meanwhile, Brent crude (BZ=F) rose and was trading at around $83/barrel as traders havehopes that Chinese demand will rebound.
In Asia, Tokyo’s Nikkei 225 (^N225) lost 0.11% to close at 27,423 points, while the Hang Seng (^HSI) in Hong Kong finished flat at 19,993. The Shanghai Composite (000001.SS) slipped 0.28% to 3,258 points.
In the US stocks tumbled Friday after the Federal Reserve’s most closely watched inflation measure came in stronger than expected, in another sign that price pressures have become sticky into 2023.
The Dow Jones (^DJI) lost 1.02 % to close at 32,816 points. The S&P 500 (^GSPC) tumbled 1.05% to finish at 3,970 points and the tech-heavy NASDAQ (^IXIC) fell 1.69% to 11,394.
Read more: How to make the most out of your bank and savings accounts
“For core US PCE, the 3m, 6m and 12m annualised numbers are now 4.8%, 5.1% and 4.7% and thus strongly hint at inflation stickiness. With this data it’s tough to rule out a return to 50bps hikes even if that’s not yet the base case. While that uncertainty is there, markets will stay on edge,” Deustche Bank analyst Jim Reid said.
S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the green as trade began in Europe.
Watch: Fed lost control of inflation when they started raising rates: Kenny Polcari
Download the Yahoo Finance app, available for Apple and Android.
,,,
