UK stocks trade higher despite Brexit worries

Majority of European indices fell 0.6% in early trade on Monday and the FTSE 250, was the biggest loser falling 0.7% as growing risks of a no-deal Brexit, EU budget concerns and fresh Sino-U.S. tensions sapped some appetite for risky assets. The main source of concern in Europe is trade talks regarding Brexit which are unlikely to end with a deal as the key outstanding issues are still remaining. Early in the session, Sun reported that Prime Minister Boris Johnson could call off further talks "within hours", while EU chief negotiator Michel Barnier briefed EU leaders that there were still "serious divergences" between the two. Later few media outlets, including Reuters, Bloomberg and Wall St Journal, reported that there has been "no decisive progress made so far although some progress has been made", citing a senior EU diplomat on the matter. The Daily Telegraph's political editor, Gordon Rayner tweets that: "UK sources say little chance of a Brexit trade deal today. But PM won't walk away if there is still any chance of a deal being done. UK feel under less time pressure than EU because we could ratify a deal quicker than EU can, so UK won't set deadline & happy to talk for days more"
It seems the news that Boris Johnson isn't likely to walk away may lift market sentiment slightly. Also British Prime Minister and European Commission President Ursula von der Leyen are due to hold another call on Monday evening, according to Reuters.

UK100 - despite the negative sentiment most indices from the Western Europe managed to partially erase early losses. UK 100 index is even trading higher, partially on hopes of a faster economic recovery as COVID-19 vaccines get rolled out, starting this week in Britain. Currently index is testing earlier broken trendline which coincides with a local resistance at 6581 pts. Source: xStation5

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