Trump threatens to derail US stimulus

LONDON – The European market opened more on Wednesday as investors expected a Brexit trade deal could come amid concerns over the approval of the long-delayed US Coronavirus stimulus package.

The Pan-European Stokes 600 index was up 0.5% during morning deals, with Autos stock climbing 1.6% to lead the gains. Health Care shares declined 0.3%.

On Tuesday, EU chief Brexit negotiator Michel Barnier said Brexit was making a “final push” to strike a trade deal with Britain, but disagreements over fishing rights remain. There have been positive reports about the negotiations, with ITV’s Robert Peston claiming that the deal could be reached on Wednesday.

Stateside, President Donald Trump suggested on Tuesday that he may not sign the $ 900 billion Kovid relief bill passed by Congress earlier this week. Trump called the measure an inappropriate “insult” and urged lawmakers to make several changes, including larger direct payments to individuals and families.

In Asia, stocks were high despite Trump’s comments. MSCI’s largest index of Asia-Pacific shares outside Japan rose 0.6%.

On Wall Street, stock futures changed little in overnight trading, largely recovering from earlier declines after Trump expressed concerns with the new Kovid relief package.

Back in Europe, France reopened its border to England on Wednesday, requiring passengers arriving at the border to receive negative coronovirus test results. This comes after France imposed a ban on people and freight restrictions amid concerns over the already-identified Kovid strain already identified in France’s southeastern England.

Concerns over the economic impact of Britain’s tough new lockdown measures aimed at curbing the spread of new coronovirus stress, as well as ongoing Brexit uncertainty, have recently weighed on investor sentiment.

Travel and leisure stocks were boosted by the news that France lifted the travel ban on Wednesday. British Airways parent company IAG rose 3% to lead the sector.

Looking at individual stocks, Daimler rose 3% on top of the Stocks 600 following a report by Handsblatt that the German automaker plans to list its trucks trading.

In the European benchmark, the sports workshop fell by almost 2% while meal kit provider HelloFresh sank about 3%.


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