Europe open: Shares up on Brexit deal hopes
European shares were higher on Wednesday as a report that a Brexit trade deal could be agreed later boosted sentiment, offsetting concerns about a potential delay to the US fiscal stimulus bill.
The pan-European STOXX 600 index was 0.3% higher. UK broadcaster ITV said progress had been made in talks on fishing rights. London’s export-dominant FTSE 100 was lower as the pound rose on the news.
There was more positive news as the French government lifted its travel ban on the UK with an estimated 1,500 trucks stranded in the south-eastern region of Kent set to move again and restore vital supply links to the continent.
Susannah Streeter, Senior investment and markets analyst at Hargreaves Lansdown, said the the UK and EU "appear to be shuffling closer together" on a trade deal.
‘’At a time when all anyone wanted think about was turkey, with a trade deal wrapped up under the tree, it seems negotiators are still stuck on the fish course, arguing about the bare bones of an agreement."
"Morsels of progress do now seem to be coming from the table, helping the pound strengthen since yesterday against the euro and the dollar, as both sides appear to be shuffling closer together."
In the US, President Donald Trump threatened to not sign the $892bn coronavirus relief bill approved by Congress, calling it a “disgrace” and demanding changes.
Trump complained the bill delivered too much money to foreign countries and not enough to Americans. The legislation provides a $600 payment to most Americans but the president wants Congress to increase the “ridiculously low” figure to $2,000, or $4,000 for a couple.
In equity news, Daimler shares rose 2.6% after German business newspaper Handelsblatt reported the German luxury carmaker is preparing a stock market listing of its trucks division.
Travel stocks rallied on the hopes of a Brexit deal with easyJet higher.
Shares of Cairn Energy surged after the oil and gas exploration and development company won a long-standing tax dispute with the Indian government over backdated charges and said it will receive $1.2bn in damages, plus interest and costs.