With London’s stock market closed for the night, it’s time to wrap up.
Here’s our latest news story on the Brexit talks:
And do watch the website for further developments tonight.
Goodnight. GW
Here’s the BBC’s Faisal Islam on the state of play tonight.
Faisal Islam (@faisalislam)On Brexit, things close, as you’ve heard, waiting apparently on a PM:VDL call, but member states haven’t been briefed on the whole deal yet..
December 23, 2020
As they would, senior European source saying “big concessions from the UK on fish”. We’ll know when we see, but sign EU27 in sales mode.
Faisal Islam (@faisalislam)Clearly both sides will say other has compromised more - only way to tell is when the detail is published which even if deal comes tonight, we won’t get till tomorrow - as I reported last week text was 800 pages and 1000 further in annexes etc, though Tony C says it’s now 2000
December 23, 2020
Faisal Islam (@faisalislam)To be clear - we can only tell who compromised more than just “both sides” when we see the text... the informational value I take from sources such as this making claims like this though, is that UK-EU deal is very close, though member states with vetos yet to see it in round...
December 23, 2020
The pound is still holding steady at $1.35 tonight, as traders wait for hard news on the Brexit trade deal talks.
Julian Jessop (@julianHjessop)Happy Brexmas!
December 23, 2020
Currency markets had largely priced in a #deal, so there's limited upside for #sterling on this news alone
But I'm more interested in the boost to consumer and business confidence - and #investment - from the end of #Brexit uncertainty. That should be bigger. 😀
Updated
European stock markets also posted strong gains tonight, as the prospect of a Brexit deal lifted spirits.
Germany’s DAX jumped 1.25%, Italy’s FTSE MIB gained 1.3%, France’s CAC rose 1.1% and the Spanish IBEX rallied by 1.7%.
David Madden of CMC Markets says:
Increased chatter than the UK and the EU will reach a trade deal has boosted sentiment. Equity markets were already up on the session in advance of the optimism surrounding the trade talks, so then the bullish move was turned up a notch.
The Covid-19 crisis is still very much in the news but for now traders are fixated on the UK-EU situation. On the London market, banks, housebuilders, airlines and transport stocks are showing decent gains. The FTSE is seeing its gains capped by the rise in the pound – which has pushed internationally focused stocks like Reckitt Benckiser, AstraZeneca and Diageo into the red.
Susannah Streeter (@StreeterNews)UK listed financial and travel shares ended steeply higher on expectations of a Brexit trade deal. Lloyd’s up 7%, British Airways owner IAG up 6%, easyJet up 7%. Domestically focused FTSE 250 up 1.7%. Pound jumped 1.3% to $1.352 and 0.9% to €1.11. https://t.co/CBP75S6Tgl
December 23, 2020
The smaller FTSE 250 index, which has a stronger domestic focus, rallied more strongly.
It jumped 1.7% to 20297 points, close to the near-10 month high set last week.
Top risers included Virgin Money (+8.4%), budget airline easyJet (+7.3%) and property group Hammerson (+7.3%). Oil and gas explorer Cairn Energy leapt 22%, after being awarded over $1.2bn in a long-running corporate tax dispute with the Indian government.
FTSE 100 closes higher
Britain’s blue-chip FTSE 100 index has closed higher tonight, as reports that a Brexit deal is imminent lift stocks across Europe.
Domestic stocks led the rally in London, with Lloyds Banking Group finishing 7% higher, fellow bank NatWest up 5%, airline group IAG up 6.2%, retailer JD Sports up 4.5%, and housebuilders Persimmon, Berkeley Group and Barratt Development all up over 4%.
Energy stocks also rallied, as the oil price also pushed higher after dipping overnight.
This lifted the Footsie up by 42 points to nearly 6496 points, up 0.66%, with some multinational companies dipping due to the strength of the pound.
Updated
Tony Connelly of Ireland’s RTE broadcaster has also heard that optimism over a UK-EU trade deal is rising:
Tony Connelly (@tconnellyRTE)EU sources have said a Brexit deal could be reached in the next 24 hours.
December 23, 2020
“There is an air of optimism,” one EU diplomat told @rtenews. “The final touches are between [European Commission president Ursula] Von der Leyen and Boris [Johnson, the British prime minister].”
Tony Connelly (@tconnellyRTE)3/ “There’s a very strong push to get it done before Christmas. The idea that everyone comes back again on Sunday or Monday to start again… that will happen if necessary but there does seem to be a strong push to get it done before Christmas,” the diplomat said.
December 23, 2020
Tony Connelly (@tconnellyRTE)5/ It's understood member states officials have already begun drafting legal texts which will allow for the formal acceptance by capitals of any deal, should agreement be reached
December 23, 2020
Tony Connelly (@tconnellyRTE)7/ I’m told there was important moment last night on fisheries and that VDL and Johnson have been instrumental in developments in the past 24 hours. “It’s all fish” says diplomat.
December 23, 2020
Updated
The pound is holding onto those earlier gains - still up over one and a half cents against the US dollar at $1.352, and over one eurocent at €1.109.
Full story: EU countries prepare for possible imminent Brexit deal
Our Brussels bureau chief Daniel Boffey reports that it seems the UK and EU are on the pathway to a deal tonight.
EU states are readying themselves for the possibility of a Brexit deal being struck within the next few hours, by pencilling in a Christmas Eve meeting to start the ratification process.
Ambassadors in Brussels have been told to be available to meet on Thursday if the negotiations come to fruition. Diplomats representing the EU member states are already combing through some of the the 2,000 pages of legal text that have been agreed.
A vote by the European parliament to give consent to a trade and security agreement with the UK is no longer possible, given the lack of time left before the end of the transition period. The UK exits the single market and customs union in eight days’ time.
The capitals will instead have to agree to “provisional application” of the deal on 1 January, with MEPs having their vote later in the month. The process can still take up to a week, given the need for the treaty to be translated and scrutinised by the 27 governments.
Daniel Boffey (@danielboffey)As foretold by my pelagics, it seems we are very much on the pathway to a deal tonight. We have the necessary top table theatre to come. Enjoy the show.
December 23, 2020
Daniel Boffey (@danielboffey)The stars have now aligned. https://t.co/ysTk43JrxL
December 23, 2020
The BBC’s Laura Kuenssberg cautions that the deal isn’t finalised yet, but it could be heading that way tonight...
Laura Kuenssberg (@bbclaurak)David Frost and EU’s Steph Riso are still in negotiating room in Brussels - deal is NOT finalised - seems very likely it’s heading that way tonight but not signed and sealed
December 23, 2020
Laura Kuenssberg (@bbclaurak)Nor have all EU capitals seen all the legal text - it's clear this is on the final lap, but it's not done yet and there is still last min haggling going on this afternoon
December 23, 2020
Here’s Sky News’s Joe Pike:
Joe Pike (@joepike)BREAKING: No 10 source: ‘The deal is done’.#Brexit
December 23, 2020
Joe Pike (@joepike)However other senior No 10 sources far more cautious: ‘We’re still talking’.
December 23, 2020
This latest burst of Brexit deal optimism is also lifting shares in UK companies.
Lloyds Banking Group is now the top risers on the FTSE 100, up 7%, with NatWest Group up 5%,
IAG, the parent company of British Airways, are up almost 6% now.
Housebuilders, who are another bellwether of UK economic prospects, are also rising - with Persimmon and Barratt Development both up 4% today.
This has lifted the FTSE 100 index up by 27 points or 0.4% -- with multinationals dipping due to the jump in the pound (it makes their overseas earnings less valuable in sterling terms)
The smaller, domestically-focused FTSE 250 index has jumped 1.6%, with budget airline easyJet up 8%.
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