• The pan-European Stoxx 600 was up 0.87 percent during mid-morning deals, with almost all sectors and major bourses in positive territory
• Europe’s banking index led the gains on Friday morning, up almost 3 percent after global regulators signed a long-awaited agreement in the previous session
• The U.K. and European Union finally agreed upon three particular issues that had impeded negotiations, paving the way for the next phase of discussions

European markets were higher on Friday morning, as investors reacted to progress in Brexit negotiations and a long-sought deal regarding global banking regulations.

The pan-European Stoxx 600 was up 0.87 percent during mid-morning deals, with almost all sectors and major bourses in positive territory.

Europe’s banking index led the gains on Friday morning, up almost 3 percent after global regulators signed a long-awaited agreement in the previous session. The deal represents the last piece of the Basel III puzzle and is a compromise between U.S. and European regulators over capital levels and measurements of risk in the industry. Danske Bank, Lloyds and Societe Generale were all more than 4 percent higher on the news.

Meanwhile, basic resources stocks — with their heavy exposure to China — were trading up around 1 percent. A robust rebound in Beijing’s iron ore and copper imports appeared to stem a recent downturn in commodity prices. ArcelorMittal, the world’s largest steelmaker, was up nearly 1 percent in mid-morning deals.

South African retailer Steinhoff plunged over 32 percent on Friday morning after Moody’s downgraded the stock by four ratings to “junk” status. The company has lost more than 80 percent of its value — wiping more than $12 billion off its market value — since it revealed accounting irregularities and parted ways with its chief executive, Reuters reported.

Brexit breakthrough

Brexit continues to keep investors on their toes with the U.K. and European Union finally agreeing upon three particular issues that had impeded negotiations, paving the way for the next phase of discussions. Sterling rose almost half a percent to hit a six-month high against the euro after the announcement.

Speaking of politics, news Stateside is expected to shake up sentiment, whether that be related to Russia relations, tax reforms or geopolitics. In the latest from the country, Congress moved rapidly to send President Donald Trump a short-term funding bill on Thursday, in order to prevent a government shutdown from happening this weekend.

Source CNBC International

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