LONDON – European equities advanced on Wednesday, following a positive trend on Wall Street on Tuesday and in Asia Pacific overnight.
The pan-European Stoxx 600 climbed 0.9% in early trading, with cars adding 2% to drive profits as all sectors and major exchanges moved in positive territory.
European Commission President Ursula von der Leyen said on Wednesday that progress had been made in talks on a post-Brexit trade deal with the UK and that the next few days would be “decisive”, boosting equities. at the beginning of the session. Sterling and the euro both jumped on the notes, hitting $ 1.35 and $ 1.22 respectively.
The positive trend was set for European markets after gains on Wall Street Tuesday, which resisted a negative trend in recent sessions. The Dow Jones Industrial Average climbed nearly 340 points, aided by a 5% rise in Apple shares, while the S&P 500 climbed 1.3%, a four-day loss.
Asia-Pacific stocks were higher in trading on Wednesday after a sudden rebound on Wall Street as optimism grew about the prospect of more stimulus measures in the wake of the Covid-19 pandemic.
House Speaker Nancy Pelosi invited congressional leaders, including Senate Leader Mitch McConnell, to discuss government funding and the aid package on Tuesday. McConnell later told reporters when he left the Capitol that “significant progress” was being made, according to NBC News.
US stock futures held steady in early morning trading Wednesday as investors clung to the possibility of new fiscal stimulus before the end of the year. Investors to the States will also look forward to the Federal Reserve’s comments on the future of the US economy on Wednesday.
While the Fed’s long-term outlook is expected to be enhanced by the vaccine, the central bank is expected to sound very subdued at the end of its meeting.
Back in Europe, the increase in coronavirus cases is also a major concern for investors with several major economies, including Germany, Italy and the Netherlands, who are changing Christmas plans to ease restrictions to prevent a surge in cases. curb.
On Wednesday, Germany will kick off the Christmas lockdown that requires schools and non-essential stores to close. The UK is also reconsidering plans to relax the rules to allow families to gather during the festive season after high-profile criticisms of the move.
Activity in the eurozone was better than expected in December, but still contracted, according to a preliminary release on Wednesday. The composite output value of the PMI (purchasing managers’ index) for the eurozone, which looks at activity in both manufacturing and services, was 49.8 in December from 45.3 in November. However, a value below 50 still indicates a contraction in business activity.
In terms of individual price movements, telecom and cable group Altice Europe rose more than 23% in early trading after Next Europe increased its buyout offer for the company.
At the lower end of the European blue chip index, shares of Belgian pharmaceutical company Galapagos fell more than 13% after US partner Gilead opted not to seek approval for a rheumatoid arthritis drug, Reuters said.
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