British bank shares bounce on reports of Xmas Eve Brexit breakthrough

LONDON, Dec 24 (Reuters) - Shares in Britain's largest banks
surged in early trading on Thursday on reports that the UK and
the European Union were on the cusp of securing an
eagerly-anticipated trade deal, soothing months of worry about
Britain's economic prospects in 2021.

Lloyds Banking Group saw its stock climb by 5.1% by
0827 GMT, while taxpayer-backed NatWest Group jumped by
2.7%. Barclays gained 3.4%.

Hopes of a Brexit breakthrough rebounded on Wednesday, after
signs of compromise on intensely-guarded fishing rights and
competition rules emerged after weeks of fraught talks between
the estranged allies.

Financial services are not part of the trade deal talks,
with EU access for the City of London from January being dealt
with separately by Brussels.
(Reporting By Sinead Cruise and Iain Withers, editing by Huw
Jones)