(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)
* Britain-EU rifts over fishing narrow
* U.S. Congress approves $892 bln pandemic aid package
* Tech stocks, banks lead broad-based gains in Europe
* AstraZeneca slips as asthma drug fails in late-stage trial (Updates to close)
By Susan Mathew
Dec 22 (Reuters) - European shares posted their best day in six weeks on Tuesday, rebounding from a sharp sell-off as optimism around Brexit and U.S. stimulus helped to allay worries of a further hit to the global economy from a new coronavirus variant in Britain.
The pan-European STOXX 600 index .STOXX finished up 1.2% on broad-based gains, recovering from a more than 2% slide in the previous session, which was also its biggest one-day drop in nearly two months.
The European Union is giving a "final push" in a bid to strike a Brexit trade deal with Britain, its chief negotiator said on Tuesday, with the two sides inching towards agreement on fishing - a major sticking point - days before the end of Britain's transition deal since it left the bloc. progress in fishing) highlights the willingness to move towards something that will eventually break the current deadlock," said Joshua Mahony, senior market analyst at online trading platform IG.
Helping London's blue-chip index .FTSE reverse early losses, data showed Britain's economic recovery from its coronavirus crash was quicker than previously thought in the third quarter. The index closed 0.6% higher, breaking a three-day losing streak.
The losses were triggered by the emergence of a fast-spreading new coronavirus variant in Britain, which has forced wider lockdowns there and led countries around the world to close their borders to the UK. The EU on Tuesday recommended rolling back border closures to allow freight to resume.
"The COVID-led economic isolation of the UK (is) serving to provide a heavy dose of reality of the kind of disruption that could come if negotiators fail to agree a (Brexit trade) deal by year-end," Mahony said.
Meanwhile, U.S. President Donald Trump on Tuesday signed a stopgap measure to fund U.S. agencies for another week after Congress passed a long awaited $892 billion COVID-19 aid package overnight. AZN.L was the biggest weight on the pan-region index, down 1.5% after its experimental asthma drug developed with U.S partner Amgen AMGN.O failed to meet the main goal of a late-stage trial.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.