LONDON – European stocks rose on Wednesday after a positive trend on Wall Street on Tuesday and the Asia Pacific markets overnight.
The Pan-European Stakes 600 climbed 0.9% from early afternoon trading, with Auto up 2.5% as all sectors and major stocks entered positive territory.
European Commission President Ursula von der Leyen said on Wednesday that negotiations had progressed in the post-Brexit trade deal with Britain and that the offer of a sharp rally in the next few days at the start of the session would be “decisive”. Sterling and the euro both leaped at the comment, $ 1.35 and $ 1.22 respectively.
Sensing a negative stance in recent sessions, Wall Street Tuesday set a positive trend for European markets following gains. The Dow Jones Industrial Average gained nearly 340 points, helped by a 5% jump in Apple’s stock, while the S&P 500 climbed 1.3%, losing a four-day streak.
US stock futures are pointing to a slightly higher opening on Wednesday, as investors cling to the possibility of new fiscal stimulus before the end of the year. Investors will look to the states for comments from the Federal Reserve on Wednesday about the future of the US economy.
While the Fed’s long-term outlook is expected to improve due to the vaccine, the central bank expects a very loud voice at the end of its meeting.
Asia-Pacific stock rose on Wednesday after an overnight surge on Wall Street as optimism grew more in the wake of the Kovid-19 epidemic.
House Speaker Nancy Pelosi on Tuesday invited Congress leaders, including Senate Majority Leader Mitch McConnell, to discuss government funding and relief packages. McConnell later told reporters that when he was leaving the Capitol that “significant progress” was taking place, according to NBC News.
In Europe, the rise in coronavirus cases is also a major focus for investors from several major economies, including Germany, Italy and the Netherlands, to change the Christmas plan to relax restrictions to prevent a rapid rise in cases .
On Wednesday, Germany is starting its Christmas lockdown in which schools and non-commercial shops will have to close. The UK is also rethinking plans to relax regulations to allow families to gather during the festive period following high-profile criticism of the move.
Business activity in the euro area was better than expected in December, but still contracted, according to preliminary data on Wednesday. The Flash Euro Zone PMI (Purchasing Managers’ Index) overall output reading, which looks at activity in both the manufacturing and services sectors, came to 49.8 in December, up from 45.3 in November. A reading below 50 still indicates a contraction in business activity.
In terms of the individual share price movement, telecom and cable group Altice Europe rose more than 23%, as its founder extended a buyout offer to take the company private.
At the bottom of the European blue chip index, shares of Belgian pharmaceutical company Galápagos fell by more than 14%, according to Rael, when US partner Gilead opted not to seek approval for the rheumatoid drug.
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