Britain and the European Union have agreed to a landmark deal aimed at “resetting” their post-Brexit relationship, easing restrictions on travel and work for hundreds of millions of people on the continent.

London stocks ended at a seven-week high on Monday as the UK struck a wide-ranging deal with the European Union in the most significant reset of ties since Brexit, while a Moody's downgrade of U.S. sovereign credit rating reverberated across global markets.

British Prime Minister Keir Starmer said the deals will slash red tape, grow the British economy and reset relations with the 27-nation trade bloc since the U.K. left the EU in 2020.