U.K. stocks significantly trimmed their gains and closed only marginally higher on Friday, weighed by a rise in the pound after a more positive tone came out of the EU summit in Brussels, seen as moving Brexit talks along.
What stocks are doing: The FTSE 100 index ended 0.19 point higher at 7,523.23, finishing the week 0.2% lower and breaking a four-week winning streak. The London benchmark had opened in positive territory on Friday, boosted by a slide in pound against the dollar after the U.S. Senate narrowly approved a Republican budget resolution. The 51-49 vote paves the way for tax reforms that could lead to $1.5 trillion in U.S. tax cuts and is seen as dollar positive, analysts said. Weakness in the pound can help pull up shares of multinational companies. It can provide a currency-related boost to earnings, once the companies translate their revenue into sterling. However, later in the day, sterling started to move higher after progress was made in Brexit talks between the U.K. and EU leaders.
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