Markets were unsettled on Monday by the latest Covid 19 fee and the absence of signs of a trade agreement between the UK and the EU.
Investors, however, calmed their nerves by the end of Tuesday as financial markets recovered amid the lack of signs of a trade agreement and closed borders.
At 6,453.16, the FTSE 100 index closed up 36.84 points, or 0.6 percent. The benchmark index had lost 112.86 points on Monday, or 1.7 percent . Mostly made up of British firms, the FTSE 250 had an even better day, closing 258.61 points, or 1.3 percent, at 19,950.72.
The CAC 40 closed up 1.4 percent in Paris, while the DAX 30 was up 1.3 percent in Frankfurt.
UK markets are in recovery mode today, with yesterday’s sharp decline in domestically oriented assets partially reversed during the day, Josh Mahony, market analyst at IG Group, said. Uncertainty seems to be a forgotten conclusion as we move towards the end of the year, with the UK’s Covid-induced economic isolation helping to provide a heavy dose of the truth of the kind of turmoil that may come.
“However, a Brexit failure is not a certainty, and market sentiment in the coming week will depend heavily on the ability to find a compromise on the remaining issues.”
However, the pound did not suit the fluctuations in the markets, dropping by 0.76% against the dollar as the markets closed at 1.336, and by 0.26% against the euro at 1.097.
In corporate news, shareholders of DFS Furniture were delighted to learn that online revenues increased more than three-quarters in the 24 weeks ended Dec. 13, leading to a 19 percent rise in overall sales year-over-year, compensating for decreases from closures due to restrictions on Covid 19.
At 232 pence, shares closed up 22 pence, or 10.5 percent.
The long-running fight for telecommunications giant Vodafone came a step closer to a conclusion when the company decided to buy out minority investors for EUR 2.12 billion (£ 1.9 billion) from Germany’s largest cable company, Kabel Deutschland.
Since gaining a commanding 76.8 percent stake in the company seven years ago, with investors furious at the price charged, the telecom giant has been involved in a legal battle.
At 121.78p, Vodafone shares closed down 018 per cent.
Low-cost carrier easyJet announced that it had reached an agreement with Airbus to delay the delivery of new aircraft due to the Covid 19 crisis between 2022 and 2024 until 2027 and 2028. Shares closed at 17.8 pence to 775 pence.
The owner of Welcome Break, Applegreen, revealed that after a group including its founders and private equity giant Blackstone, the company would go private after a €718 million (£653 million) acquisition offer. Shares at 510 pence closed up 5 pence.
Weir Group said that the sale of its oil and gas business was postponed until the first quarter of 2021 – despite planning to complete it by the end of the year. In October, Weir agreed to sell the division to Caterpillar for £ 314 million. Shares closed at 517.5 pence to 12.5 pence.