European stocks open higher amid hopes for Brexit trade deal

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

Britain’s FTSE 100 climbed 0.4% while France’s CAC added 0.2%. The German and Italian markets are closed for Christmas Eve.

British bank shares led the gains as traders bet a deal would be agreed soon, with Lloyds climbing 7%, Barclays rising nearly 4% and Natwest up over 3%.

Britain and the European Union are said to be on the cusp of striking a post-Brexit trade deal on Thursday. It comes after months of political wrangling over key sticking points such as fisheries.

U.K. Prime Minister Boris Johnson was due to speak with European Commission President Ursula…