European stocks rose early on Thursday, as the market eagerly awaited the prospect of a trade deal between the U.K. and the European Union before the year-end deadline, with the pound and euro trading strongly against a clobbered dollar.
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Trade negotiations between the U.K. and EU are in their final stretch after a deadline of last Sunday was extended, sparking optimism that a deal could be done. Come Jan. 1, the U.K. will complete its exit from the EU with or without a trade deal, and key issues remain unresolved.
“Markets in Europe have continued to push higher this morning as the landing zone for an EU-U.K. trade deal starts to come into view,” said Michael Hewson, chief market analyst at CMC Markets U.K.
“As far as an EU-U.K. trade deal is concerned, it would appear that fishing rights are the last significant obstacle for an agreement to be put to the U.K. parliament sometime in the next week or so, with reports of talks entering a ‘tunnel’ helping the upbeat mood,” Hewson said.
Optimism in Europe has the pound GBPUSD,
The dollar DXY,
Shares in WPP WPP,
European car makers have ticked up across the board even as the European Automobile Manufacturers’ Association said new car registrations fell 13.5% in the EU, U.K., and countries of the European Free Trade Association in November. Shares in Volkswagen VOW,