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European shares climb on Brexit deal hopes

European shares climb on Brexit deal hopes

Mubasher: European equities rallied in early Tuesday trade, after European Union (EU) negotiator Michel Barnier a Brexit deal between Brussels and London could be reached this week, CNBC reported.

By 8:02 am GMT, the pan-European benchmark STOXX 600 index rose by 0.5% to 391.72 points, having surged earlier by 0.7%, as bank, retail, travel and leisure shares jumped by 1%, while all sectors as well as stock markets were in green.

In the preceding session, equities retreated following reports that China wants to hold more talks before signing “phase 1” trade deal with the US, while asking to postpone further tariffs slated for December.

Ahead of a crunch meeting between EU leaders, which would mostly decide the fate of Brexit, Barnier suggested that a departure deal this week could be possible.

“Our team are working hard, and work has just started now today, this work has been intense over the weekend and yesterday, because even if the agreement will be difficult, more and more difficult, to be frank, it is still possible this week,” Barnier was quoted by CNBC.

In terms of individual stocks, UK recruitment group Hays saw its shares climbing by 5.9% in early trade, while Novozymes stocks traded 3.1% higher, after the announcement of its CEO Peder Holk Nielsen will resign and be succeeded by an external hire.

Meanwhile, German digital payments giant Wirecard saw its shares diving by 10.3% to the bottom of the STOXX 600, on a Financial Times (FT) report showing details of the company’s accounting processes.