British stocks jump 1.5pc on first trading day outside EU

LONDON (AFP) – The London stockmarket jumped over 1.5 per cent yesterday in a strong start to 2021 on the first trading day since Britain formally left the European Union’s (EU) single market and customs union.

The benchmark FTSE 100 index rallied 1.54 per cent to 6,560.33 points at the open, having last traded on New Year’s Eve when it had lost 1.5 per cent.

In the eurozone yesterday, Frankfurt’s DAX 30 rose 1.2 per cent to 13,885.07 points and the Paris CAC 40 gained 1.3 per cent to 5,625.44.

The United Kingdom (UK) formally left the EU on January 31, 2020 but remained in a standstill transition period up to December 31 as both sides negotiated a post-Brexit trade deal which was sealed only at the last moment on December 24.

Britain formally left the European customs union and single market on December 31.

“The finer implications of the UK’s exit remain to be seen but the fact that a deal was agreed prior to the deadline removes some of the overhang which had been haunting the index for some time,” Interactive Investor Head of Markets Richard Hunter said.

With uncertainty over Brexit and a new United States stimulus package gone, sights are set on economic recovery from the calamity that was 2020, with a broad expectation that countries will enjoy strong rebounds as life gets back to some semblance of normal.