By - Hina Chowdhary
Summary
- FTSE 100 dropped from the intraday peak in the early afternoon deals on Wednesday
- PM Boris Johnson is expected to meet President of the European Commission Ursula von der Leyen later today over Brexit talks
UK stock markets slipped from the intraday high in the mid-morning deals on Wednesday, following the inconclusive talks between the European Union and the United Kingdom over the post-Brexit trade arrangement. Around 11.55 am EDT, FTSE 100 was trading at 6,583.36, up 24.54 points, from the previous day’s closing of 6,558.82. The headline index touched a peak of 6,623.03 in the early morning trades today.
According to a Financial Times report, German Chancellor Angela Markel has warned of a no-deal Brexit if the UK does not give ground. The EU is prepared to proceed “without a trade deal”, Markel had told German MPs on Wednesday.
In the early afternoon deals, FTSE 100 pared three-fourth of the morning gains. Around 12:17 pm EDT, FTSE was hovering 16.73 points, or 0.26 per cent, higher at 6,575.55.
FTSE 100 (9 December)
(Source: Refinitiv, Thomson Reuters)
The hopes that PM Johnson is leading the charge of deliberations with regards to a conclusive trade agreement has provided a comprehensive push to the domestic equity markets in December so far. In the last six trading sessions this month, FTSE 100 has risen more than 4.5 per cent after the government started the vaccination drive in the country and the renewed expectation of a win-win trade deal for both the EU and UK.
PM Johnson has left for Brussels for the last round of negotiations in connection to the new trade arrangement between the UK and EU from 1 January. Johnson is likely to meet Ursula von der Leyen, President of the European Commission, later on Wednesday.
According to media reports, the discussions between the two heads can provide a solid ground for the institution of a newly orchestrated cross-border trade arrangement between the UK and the EU.
The onset of Covid-19 vaccination in the selected geographies of Britain and the US FDA favouring the Pfizer-BioNTech coronavirus vaccine failed to lift the investors’ sentiments. The negotiation talks between the UK and the EU haven’t led to any concrete resolution yet even as the end date of Brexit transition period is two weeks away.
FTSE 100 has remained highly sensitive to any development relating to the post-Brexit arrangement in the UK. Separately, the government has issued several letters to the VAT registered businesses in Britain about the new trade arrangement with the EU from 1 January.
In the last letter dated 2 December, the government has said the changes to the customs and tax rules are likely to affect each and every person dealing with the partner countries in Europe, irrespective of the value or type of goods traded, or the frequency or the mode of transport used.
Businesses will be responsible for completing the declarations relating to their import and export of goods moved between the UK and countries under the umbrella of the EU from 1 January onwards, the government has stated.