EU markets rally on Brexit deal

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European stock markets rallied Monday after Britain sealed a Brexit deal with the EU and as Italy said it could cut its budget deficit.

The euro rose against the dollar but was down versus sterling.

Oil prices rebounded meanwhile, after slumping Friday to the lowest levels in more than one year.

Bitcoin extended its slide, dropping under $4,000 to $3,675.40 — the lowest level for 14 months.

“Italian stocks have been the outperformer in Europe…on reports that the government may consider reducing its deficit target in a bid to avert a disciplinary procedure in Brussels and a backlash in the markets,” noted Craig Erlam, senior market analyst at Oanda trading group.

“The pound is also a little higher… after Theresa May overcame the first and smallest, hurdle to her Brexit deal getting over the line.”

May will convene her Cabinet and update parliament on the newly-agreed Brexit deal Monday, as the embattled British prime minister begins the tricky task of selling the plan to a skeptical country.

In Rome, Italy’s populist government appears open to reducing its draft budget deficit, fueling a surge in the Milan stock market on hopes Rome could ease a stand-off with EU officials in Brussels.

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