19.05.202516:03:57UTC+00UK Stocks Lifted by UK-EU Deal

On Monday, the FTSE 100 posted a modest gain of 0.2%, following a 1.5% increase the previous week. This rise came as investors continued to assess the significant new agreement between the UK and the EU. The accord, praised as a "historic day," seeks to redefine UK-EU relations in the post-Brexit era, with a focus on crucial sectors such as trade, energy, security, travel, and fisheries. The announcement improved market sentiment, notably benefiting the travel sector. Airline stocks notably surged, with EasyJet and IAG shares climbing over 2%, as it was revealed that British travelers would soon re-gain fast-track entry through European borders. In corporate developments, Ryanair disclosed a full-year after-tax profit of €1.61 billion, which was a 16% decline from the previous year but slightly exceeded expectations. In contrast, Diageo shares fell by approximately 1% after the company cautioned about a $150 million annual impact due to new US tariffs, even as it unveiled a $500 million cost-reduction strategy. Looking forward, market participants are anticipating earnings reports from Vodafone and Greggs on Tuesday.