Markets across Europe showed resilience on Tuesday as investor sentiment brightened following the announcement of a new UK-EU deal dubbed the "Brexit reset." The FTSE 100 (^FTSE) climbed 0.5% in early trading, bouncing back from Monday’s losses, with European counterparts also edging higher.
Prime Minister Keir Starmer was set to address the House of Commons around lunchtime, highlighting the new agreement he lauded as a “win-win” outcome. The deal, which signals a renewed effort to stabilise UK-EU relations post-Brexit, includes a youth mobility scheme, simplified food import/export procedures, and measures to ease border controls at airports — all aimed at reducing friction and fostering smoother cooperation.
However, not all aspects of the deal are without controversy. A 12-year extension to the existing fisheries agreement has already drawn criticism from opposition voices and industry stakeholders, setting the stage for heated political debate.
Meanwhile, investor optimism was bolstered by corporate results. Technical parts manufacturer Diploma (DPLM.L) surged over 16% after releasing strong half-year figures, prompting an upgrade to its full-year outlook — one of the standout performers on the FTSE.
Continental Europe also saw modest gains. Germany’s DAX (^GDAXI) was up 0.4%, while France’s CAC 40 (^FCHI) and the broader STOXX 600 (^STOXX) each added 0.5%, indicating a cautious but positive mood across the region.
Across the Atlantic, sentiment was more subdued. US stock futures dipped as traders remained wary about the economic outlook. Despite the United States losing its final AAA credit rating on Friday, Wall Street managed a slight uptick on Monday, underscoring the complex dynamics at play.
As markets digest the implications of the UK-EU reset and global economic signals remain mixed, traders will be watching closely for further updates — both political and financial — to guide their next moves.
Looking ahead, the new UK-EU agreement could bring more stability to cross-border trade and reduce some of the post-Brexit uncertainty that has weighed on markets in recent years.
For traders, this presents both opportunities and risks — improved clarity around regulations could boost sectors like logistics, manufacturing, and retail, while ongoing political scrutiny over elements like fisheries may trigger volatility.
At Trendsignal, we help traders navigate these market shifts with confidence. Our expert-led training, real-time trading signals, and proven strategies are designed to help you spot high-probability trades in response to macroeconomic events like this, turning news into actionable insight.
