FTSE 100 set for modest Brexit deal bounce

Reports that Britain and the EU are “within touching distance” of a Brexit deal has done wonders for the pound but not much for equities. Spread betting quotes suggest the4 FTSE 199 will add to yesterday’s gains but only to the tune of 35 points at 6,531. As Christmas tunes go, it is not exactly Darlene Love’s majestic “Christmas (Baby Please Come Home)” – but then who can come home this Christmas? The Prime Minister, Boris Johnson, is set to make an announcement this morning. Breaking - Boris on route to Four Seasons Total Landscaping to unveil the new deal#BorisJohnson #BrexitDeal #BrexitShambles pic.twitter.com/lizGBpAK0S — Popslurm (@retrobookshelf) December 23, 2020 “Still, it leaves the UK isolated internationally due to Covid-19, thousands of trucks marooned on each side of the English Channel and follows more of England’s regions being moved into a hard tier-4 lockdown. With Christmas in England starting to resemble one reminiscent of the wartime blitz, it is perhaps not surprising that Sterling's bullish reaction is underwhelming. Not helping is that the world is long enough Sterling to fill in the English Channel,” said Jeffrey Halley at OANDA. Grinchily. Sterling was six-tenths of a cent higher at US$1.3557 against the dollar today having put on a bit of a spurt last night when news broke of a probable Brexit deal. Not much else is expected to interfere with Brexit news today, particularly as it is a shortened trading day. Overnight, the Nasdaq Composite lost ground while the Dow Jones Industrials and the S&P 500 made headway, in a reversal of the normal form. The Nasdaq Composite was off 37 points at 12,771 while the Dow Jones was up 43 points at 6,496 and the S&P 500 climbed 3 points to 3,690. Asian markets are mostly better this morning with the Nikkei 225 in Tokyo 113 points higher at 26,638 and the Hang Seng index 43 points to the good at 26,387. Around the markets Sterling: US$1.3557, up 0.61 cents 10-year gilt: 0.288%, up 10.35 basis points Gold: US$1,879.10, up US$1.00 Brent crude: US$51.63 a barrel, up 42 cents Bitcoin: US$23,016, down US$282