World stocks rose as a breakthrough in Brexit negotiations added momentum to an upswing underpinned by strong economic news from China and Japan.
Britain and the European Union struck a deal yesterday to move on to talk about trade and a transition period after they agreed the outline of their divorce deal.
Shares across the continent surged on the news, and even Britain’s FTSE 100 Index, which tends to move inversely with sterling, was higher through the day despite an early rally for the British currency. At one stage sterling gained half a per cent to hit a six-month high of 86.9 pence against the euro, but this completely reversed as the session went on.
The pan-European share index rose 0.8 per cent, pushing the MSCI world equity index, which tracks shares in 47 countries, up 0.2 per cent.
European banking shares were among the biggest gainers after financial regulators reached a long-sought deal on Thursday to harmonise global banking rules, but said the rules would take effect in 2022, later than previous expectations for 2019.
The dollar had risen earlier in the session but retraced a touch after the release of US payroll data.
Job growth in the world’s biggest economy increased at a strong clip in November but wage growth was a touch lower than expected.
The yield on 10-year US Treasuries also dipped slightly before rising again on this mixed picture.
Yesterday, Asian shares rallied for a second session in a row as economic news from China and Japan beat all expectations.
Beijing reported exports surged 12.3 per cent in November from a year earlier, more than double the forecast, while imports climbed almost 18 per cent.
Iron ore and copper imports enjoyed a stellar rebound, which could help stem a recent pullback in commodity prices.
Japan’s Nikkei led the way as the yen eased on the dollar, rising 1.1 per cent on top of Thursday’s 1.45 per cent bounce to be almost back where it started the week.
Gold inched up to $1,247.40, having this week breached its recent tight trading range to hit a four-month trough at $1,245.60.
Oil prices rose, helped by rising Chinese demand.
Brent futures were up 0.7 per cent at $62.91 a barrel, having climbed 98 cents overnight.
United States crude was up 71 cents at $57.40.