European stocks traded higher in a slight trading session on Thursday, as traders were optimistic about reaching a Brexit trade deal.
The British FTSE 100 rose 0.5%, while the French CAC added 0.3%. The German and Italian markets are closed for Christmas Eve.
Shares of British banks led the way, with traders betting that an agreement would soon be reached, with Lloyds rising 7%, Barclays rising almost 4% and Natwest up 3%.
Britain and the European Union are said to be on the cusp of reaching a post-Brexit trade deal on Thursday. It comes after months of political disputes over key issues such as fishing.
The Prime Minister of the United Kingdom, Boris Johnson, was due to speak with the President of the European Commission, Ursula von der Leyen, around 7 am, London time, the BBC reported. Johnson is scheduled to give a press conference an hour later.
The pound rose about 0.6% against the dollar, and traded around $ 1.36. The euro rose 0.2% to $ 1.22.
In Asia, stocks were mostly higher as investors watched the latest developments in Brexit. MSCI’s broader Asia-Pacific stock index outside Japan rose 0.5%.
On Wall Street, stock futures rose before the last trading day of the reduced week.
President Donald Trump on Wednesday vetoed a defense bill, which broke the Republican-led Senate. The move came after Congress ’$ 900 billion coronavirus relief package was considered an inappropriate“ misfortune ”.