Germany's Merkel: We need to be prepared that deal with UK may not be reached

The European Union (EU) needs to be prepared for the possibility that they may not be able to reach an agreement with the United Kingdom, German Chancellor Angela Merkel said on Wednesday.

Regarding the EU recovery fund, Merkel noted that EU members are still far apart on the matter. 

Market reaction

These comments seem to be weighing on market sentiment. As of writing, Germany's DAX 30 Index was down 1.52% on the day at 12,124 points and the UK's FTSE 100 was losing 1.17% at 6,097 points.