European stocks mixed amid hopes for Brexit trade deal; UK banks jump

European stocks traded mixed in a light trading session Thursday as traders grew optimistic a Brexit trade deal would be reached.

Britain’s FTSE 100 gave up early gains to fall around 0.2% while France’s CAC added nearly 0.1%. The German and Italian markets are closed for Christmas Eve.

British bank shares were some of the top performers as traders bet a deal would be agreed soon, with Lloyds climbing 4.6%, Barclays rising 2.3% and Natwest up 1.6%.

Sterling climbed about 0.8% versus the dollar, trading at around $1.36. The euro was up 0.1% at $1.22.

In Asia, stocks were mostly higher as investors watched the latest Brexit developments. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6%.

On Wall Street, stock futures rose ahead of the final trading day of the holiday-shortened week.