LONDON: The odds of Britain agreeing a trade deal with the European Union before the end of a transition period have risen to 57pc, up from 40pc last week, betting exchange Smarkets said on Monday.

Chances of a "no-deal" had risen to as much as 61pc on Friday from 19pc in late November after leaders failed to break an impasse in talks, according to bets placed with Smarkets.

Odds of a "no-deal" on bookmaker Betfair had fallen to 38pc on Monday, down from 58pc the previous day.

Many investment banks meanwhile still stuck to their expectations of a "thin" UK-EU trade deal while cutting down the probability marginally as talks drag on.

"Our base case remains that a 'thin' free trade agreement (FTA) will be reached before the end of the year," Goldman Sachs said in a note.

"That said, there is plenty of uncertainty around this."