U.K. Stocks Jump on German Exchange Amid Relief Over Brexit Deal
(Bloomberg) -- U.K. stocks rose on Germany’s Tradegate exchange after Britain agreed on the terms of a Brexit trade deal with the European Union before Christmas.
Retailer J Sainsbury Plc and lender Natwest Group Plc led the gains, up 8.8% and 6.8% respectively, as investors reacted with relief that potential chaotic business disruptions have been avoided. Prices were volatile in the first hours of European trading while U.K. equity markets are closed for a public holiday.
“A deal, if only a narrow one, was generally viewed as being the likely outcome all along among serious commentators,” Oliver Blackbourn, portfolio manager at Janus Henderson Investors, said by email. “The ideological hurdles were always likely to be lowered as the focus of both sides on the downside risks was sharpened by the approaching end of the transition period.”
Among other notable movers on Tradegate, Rolls-Royce Holdings Plc rose 6.7%, Standard Chartered Plc rose 5.8%, BAE Systems Plc advanced 4.9% and GlaxoSmithKline Plc gained 4.2%.
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