Sterling and shares rise as business welcomes Sunak deal

THE pound rose and stocks climbed yesterday as markets welcomed Rishi Sunak’s deal with the EU.

Business groups also cheered the agreement, which it is hoped will resolve trading issues connected to the Northern Ireland Protocol that have hampered retailers such as Marks & Spencer – although some cautioned that the devil would be in the detail.

Tony Danker, of the Confederation of British Industry, said: ‘With social, political and economic life in Northern Ireland feeling like it has been on hold for the past couple of years, this breakthrough will allow business and politicians to turn their attention to economic growth.’

Sterling climbed by more than a cent against the dollar to just under $1.21 while it added nearly half a cent versus the euro.

But the currency is likely to see further volatility until the deal overcomes any potential opposition by Tory backbenchers or Northern Ireland’s DUP, according to Walid Koudmani, chief market analyst at XTB.

The FTSE 100 rose 0.7 per cent, although it is still shy of recent record highs which saw it top ,000 earlier this month. The second-string FTSE 250, which is more domestically focused, climbed 1 per cent.

The deal will ease the passage of goods from Great Britain for sale in Northern Ireland by funnelling them through a ‘green lane’, saving them from onerous customs checks.

M&S chairman Archie Norman said that Mr Sunak’s plans ‘solve the Rubik’s Cube of the Protocol’, ending burdensome checks and improving product availability and freshness in the retailer’s Northern Ireland food business.

However, companies will face ‘added complexity and cost’ of having to add different labels for sales into the Republic of Ireland, he warned.