Morning Report – Thursday 24th December

Main Headlines

The EU is willing to cut its share of fish in British waters by 25% over a 66-month transition period according to an official source close to the negotiations. Boris Johnson is set to make an announcement this morning on a Brexit deal.

GBP

The pound is higher against the euro and dollar in trading this morning. If inside sources are correct, Boris Johnson will announce a trade deal between the EU and UK this morning, as finishing touches were made last night.

EUR

The euro is unchanged against the dollar in early morning trading today. It is set to be a quiet day for the euro, as only the ECB publish the economic bulletin. With no major events upcoming, investors should expect a smooth ride into Christmas.

USD

The dollar is lower against a set of major currencies, although is higher against the Japanese Yen. Donald Trump vetoed a $740.5 billion defence bill to cause more upheaval in the Senate, while House Minority leader Kevin McCarthy said that Nancy Pelosi’s plan to increase stimulus payments to $2,000 will most likely fail.

Markets

European equities climbed on the expectation there will be a UK-EU trade agreement to give some holiday cheer to what has been a miserable week for investors. US equity futures are higher, despite little progress on the US fiscal stimulus bill. Oil prices and Bond yields are also both higher.

Main Economic Data/Central Banks/Government (All times GMT)

9:00 a.m.: ECB publishes economic bulletin
11:00 a.m.: Turkey rate decision

This will be the last Morning Report until the 4th January, and from everyone here at Ballinger & Co., we wish you a Merry Christmas and a Happy New Year.