Saturday 21 December 2019 11:09 am

European stocks rally as Boris Johnson's Brexit deal is approved

European stocks came close to a record high on Friday following a vote on Boris Johnson’s Brexit deal in Parliament.

The Prime Minister’s deal was passed in a second reading in the House of Commons, which now makes the UK’s exit from the EU on 31 January increasingly likely.

Read more: UK stocks surge as Tories win majority

That result, along with a de-escalation in tension between China and the US, has seen markets rally.

The pan-European STOXXX 600 is primed for its best fourth quarter since 2011 and rose 0.7 per cent on Friday, just off the peak it had touched earlier in the week.

Analysts are now expecting a stronger performance than initially anticipated throughout 2020.

Read more: London’s commercial property market bounces back in fourth quarter

The FTSE 100 remained relatively flat as the pound strengthened, but the UK’s economy final reading on third quarter growth showed it had grown faster than first estimated.

The country’s current account deficit shrank to its smallest since 2012, too.