World stocks gain on report of progress on Brexit deal
singapore — World markets were mostly higher on Thursday following a report that British Prime Minister Theresa May has secured a deal with the European Union on financial services, as the country’s exit from the trading bloc looms.
Germany’s DAX rose 0.6 per cent to 11,513.16 and France’s CAC 40 was 0.2 per cent higher at 5,102.24. But Britain’s FTSE 100 was 0.1 per cent lower at 7,123.03 ahead of a policy decision by the Bank of England, which is expected to keep its interest rates on hold despite rising inflation. Wall Street was set for an optimistic open. Dow futures added 0.4 per cent to 25,167.00. S&P 500 futures rose 0.3 per cent to 2,718.00.
Hong Kong’s Hang Seng gained 1.8 per cent to 25,416.00 while the Kospi in South Korea was 0.3 per cent lower at 2,024.46. The Shanghai Composite index added 0.1 per cent to 2,606.04. Australia’s S&P-ASX 200 rose 0.2 per cent to 5,840.80. Tokyo’s Nikkei 225 index tumbled 1.1 per cent to 21,687.65. Japanese telecommunications companies sank after mobile operator NTT DoCoMo caved to government pressure and said it would cut fees by as much as 40 per cent next year. Its shares plunged 14.7 per cent on Thursday. Stocks rose in Taiwan and throughout Southeast Asia.
Regional sentiment was boosted and the pound jumped on reports that Britain and the European Union had reached a deal to give UK financial services companies access to the bloc after Brexit. The article by only cited anonymous sources, however, and other reports suggested a deal had not yet been finalised. The pound was up 1 per cent at $1.2895.