There will be no US/UK deal until #Brexit is finished. Until then, UK will stick to EU rules. And Brexit is at least 2 years in the future. And we don't know if it's hard (full split) or soft (remaining in free trade zone) split. In other words, any speculation on US/UK deal is way premature.

There is one reason this rally can last: Santa Claus. No, we don't have year-end rally every year, but we do most time. I don't think this year is an exception. I'm not selling into this rally, not until week before Christmas.

Current European positions:

ARMH, EADSY, HSBC, LRLCY, NSRGY (retirement account only), SAN

Usual disclaimer: I don't recommend anything, just communicating what I do.

If oil remains below 60, ruble has more downward pressure. Russian Central Bank is not independent. It raised rates, true. But on other hand, it bailed out several banks already and participated in shadow scheme to finance Rosneft: "somebody", bought 625 billion ruble worth of notes (more than $10 billion at current exchange rate), and the next day Central Bank started accepting these notes as collateral. That day (Dec 16) ruble collapsed and only several interventions kept it afloat. More bailouts and shadow financing schemes are on the way.

And why Yellen would be forced to taper? I don't see any reason.

Leaving Eurozone has huge costs. Not sure Ireland can afford them. As for public banks, probably too late. Government could outright nationalize bailed out banks (like in Sweden), clean them up and sell. Sure it would cost less than bailout did. Or run them through prepackaged bankruptcy (like GM and Chrysler in US). Wipe out shareholders, replace management, clean up unsecured debt for cents on the Euro and guarantee everything else. Public banks? Bad idea, mixing politics and business.