Europe open: Shares flat as Brexit deal gets hooked on fish
European stocks crept into positive territory on Thursday, distinctly underwhelmed by the prospect of a Brexit trade deal becoming reality, although fish once again appeared to be snagging confirmation.
The pan-European STOXX 600 index rose 0.17% and looked in position to recover from the sell off at the start of the week, while London’s FTSE 100 barely moved the needle on the news as a stronger pound weighed on the index.
Sterling was 0.6% higher against the dollar at 1.3575 and 0.5% firmer versus the euro at 1.1123. A stronger pound tends to hold back the top-flight index as around 70% of its constituents derive most of their earnings from overseas.
Reports from Brussels suggested the two sides were still haggling over the economically immaterial issue of fish, four and a half years after Britain chose to leave the European Union and a week before the transition period is due to end.
With traders eyeing the Christmas break, volumes were thin. Bank stocks rose on Brexit hopes, with Barclays and Lloyds both gainers this morning.
British Airways owner IAG was also on the front foot, along with travel company TUI, cruise operator Carnival, budget airline easyJet, pub chain Wetherspoons and Cineworld.