European Shares Set To Follow Asian Peers Higher
European stocks are set to follow Asian peers higher on Tuesday as U.S. President Donald Trump’s departure from hospital helped ease political uncertainty and optimism grew for more U.S. fiscal stimulus.
“Will be back on the Campaign Trail soon!!!” “Don’t be afraid of Covid,” Trump tweeted after checking out of hospital on Monday following four days of emergency treatment for Covid-19.
On the stimulus front, House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour about coronavirus relief on Monday, but emerged without an agreement.
They are expected to talk again today, continuing a recent flurry of activity working towards a deal on legislation.
Asian stocks hovered near two-week highs, while bonds and the dollar nursed losses amid an improved risk appetite. Gold edged lower while oil extended sharp overnight gains.
In economic news, factory orders and construction Purchasing mangers’ survey data from Germany are due later in the session, headlining a light day for the European economic news.
Fed Chair Jerome Powell and ECB Chief Economist Philip Lane will deliver keynote addresses at the NABE conference later today, while the minutes of the Sept. 15-16 meeting of the FOMC will be out on Wednesday.
Vice President Mike Pence and his Democratic challenger Senator Kamala Harris are all set for a debate in the Sal Lake City on Wednesday.
U.S. stocks rose sharply overnight to reach their best closing levels in a month, as concerns about President Trump’s Covid-19 health dissipated and data showed the U.S. services sector grew for a fourth straight month in September.
The Dow rallied 1.7 percent, the tech-heavy Nasdaq Composite spiked 2.3 percent and the S&P 500 surged 1.8 percent.
European markets rose on Monday, with news about Trump’s recovery, optimism about a new U.S. coronavirus relief package and encouraging euro zone retail sales data helping underpin investor sentiment.
The pan European Stoxx 600 gained 0.8 percent. The German DAX climbed 1.1 percent, France’s CAC’40 index advanced 1 percent and the U.K.’s FTSE 100 inched up 0.7 percent.
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