Boris Johnson's fishing concession proposal is being discussed, but the market is worried

On Monday evening, the British Prime Minister Boris Johnson’s desire to compromise and make concessions to the European Union on the fishing clause became known. According to his new plan, the cost of fish that the EU catches in British waters should be reduced by 30%. In return, the United Kingdom seeks concessions in other items of the contract.

Last week the UK pushed for the European bloc to cut costs by 60%, but the EU refuses to cut costs by more than 25%. The European Commission is currently consulting with EU member states on the UK proposal, and Michelle Barnier is due to inform his 27 ambassadors at approximately 16:00 (GMT+1) on Tuesday in Brussels. The authorities added that a compromise could still be reached.

Against this background, the market has stabilized after falling on Monday. Hopes for a deal remain. An additional bullish driver for the market is the US Congress’s positive decision on the $ 900 billion bailout bill. As noted in ING Group, the agreed package of tax breaks will undoubtedly help mitigate some of the negative factors, but, unfortunately, it will not fully offset the effects of the pandemic.

The European stock market has partially recovered its losses but is in no hurry to return to the highs. The likelihood of developing a correction remains as the yield of the primary bonds continues to decline.

Major stock indices are trading down:

S&P 500 (F) 3,687.88 +2.13 +0.06%

Dow Jones 30,216.45 +37.40 +0.12%

DAX 13,364.25 +117.95 +0.89%

FTSE 100 6,421.65 +5.33 +0.08%

Important events:
  • – 16:30 (GMT+3) The number of initial applications for unemployment benefits in the United States;
  • – 16:30 (GMT+3) Canadian GDP (m/m) (Oct);
  • – 18:00 (GMT+3) New Home Sales in the United States (Nov);
  • – 18:30 (GMT+3) US crude oil reserves.

by Justforex, 2020.12.22

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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