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UK stock markets are likely to open largely unchanged on Wednesday, 23 December, with the headline FTSE 100 stock index starting off on a flat note as market participants await a constructive development in connection with the post-Brexit trade agreement between the United Kingdom and the partner European countries. The outbreak of the newly identified coronavirus strain and Britain’s response in tackling it at the time of Christmas festivities is likely to remain in focus in the coming days.
Dull sentiment persists
Britons have been told to stay at home for the maximum possible time in the near future as the health authorities are investigating the nature of the mutated virus. The not-so-positive global cues with Asian markets trading marginally high in the late deals and a negative-to-slightly higher closing on Wall Street is likely to weigh on the UK equities. With the once again tightened environment after the closure of the international border, the United Kingdom administration is seemingly working to normalise the travel situation.
UK-French border opens
Yesterday itself, the UK government reached an agreement with the French counterpart to reopen the borders allowing the freight services, as well as some of the passengers to cross either sides. Easing the travel tightness, the UK government is set to resume air, rail and sea services to France from 23 December for all the individuals.
According to the government, the people, willing to travel to France from the UK, are mandatorily required to present a negative Covid-19 test report examined in the last 72 hours. The protocol between the two governments is likely to continue until 6 January with a review scheduled on 31 December.
Restoring confidence
Bringing back the day-to-day activities on track is likely to bolster investors’ confidence. With the expeditious move by the government, the GBP to USD pair has improved from its last closing. As per the Reuters data, a unit of pound sterling equalled 1.3406 US dollars at around 0639 GMT. The Bank of England has fixed a currency conversion rate of 1.3314 US dollars against a unit of Great Britain pound.
GBP vs USD (23 December)
(Source: Refinitiv, Thomson Reuters)
Meanwhile, the cryptocurrency market also showed some firmness on 23 December with bitcoin trading 3.35 per cent higher at $23,520.92.
Commodity check
In the commodities market, an ounce of gold was trading at $1,865.83, up 0.34 per cent from the previous close continuing to reflect the investors’ attention towards the safe-haven assets with the jeopardising uncertainty arising in the equity section. Energy market also recovered marginally with the Brent crude oil trading 1.50 per cent lower at $49.34 a barrel and NYMEX crude oil fluctuating at $46.31 per barrel, down 1.53 per cent.
