The FTSE 100 opened higher on Tuesday, buoyed by positive sentiment from a landmark EU-India free trade deal. The agreement, dubbed the "Mother of all deals," covers a substantial portion of global GDP and trade. The British pound also remained strong, trading above $1.36 against the dollar, reflecting investor confidence in the UK market.

The EU-India trade deal concludes negotiations that began in 2007. It's expected to bring major opportunities for both regions, boosting manufacturing and the services sector. The agreement's size and scope could lead to increased investor confidence. The deal is a significant win for both sides, opening up markets and fostering economic growth.

In company-specific news, Saga (SGE) reported strong revenue growth, and shares jumped after the London market opened. However, Paragon Banking Group (PAGPA) faces margin pressures. Meanwhile, Tesla's European sales dropped nearly 27% in 2025. This contrasts with BYD's robust growth in the region.

Investors should watch for the long-term impacts of the EU-India trade deal on various sectors. The deal is a signal of the growing importance of trade partnerships. The performance of companies like Saga will be an important indicator of market health. Focus is also on the potential impact of margin pressures on the financial sector.