European stocks traded higher on Tuesday, extending gains from the previous session, as investors’ hopes for an economic recovery has been raised following a post-Brexit trade deal between European Union and the U.K., as well as U.S. President Donald Trump’s signing of the hefty pandemic and spending bill.
The trading was in line with Asian stock markets that ended mostly higher on Tuesday.
The investors were positive after Trump signed a $900 billion coronavirus economic aid package and $1.4 trillion package to fund government agencies, averting a federal government shutdown that would have started on Tuesday.
In subdued trading in the week between Christmas and the upcoming new year holiday on Friday, investor sentiment also reflected the decision by the U.S. House of Representatives to back Trump’s proposal for increasing the direct payments in the coronavirus relief package to $2,000 from $600 as demanded by Trump. The proposal has now been sent to the Republican-controlled Senate for a vote.
In Covid-19 news, the European Union has undertaken a massive coronavirus vaccination drive, even though there are concerns over the spread of new coronavirus variant. As per reports, the U.K. is expected to approve Oxford-AstraZeneca Covid vaccine this week.
In economic releases, Sweden’s imports for the month of November was down 2 percent from last year, and exports were down 3 percent.
As per survey results from IHS Markit, Austria’s manufacturing sector continued to recover from the Covid-19 pandemic. The headline UniCredit Bank Austria Manufacturing Purchasing Managers’ Index rose to 53.5 in December from 51.7 in the previous month.
Further, Turkey’s economic confidence decreased in December, figures from the Turkish Statistical Institute showed.
Portugal’s November retail sales were down 5.1 percent on year, compared to 0.4 percent drop in October.
The pan European Stoxx 600 traded up 3.82 points or 1 percent at 402.40, after gaining 0.7 percent in the previous session.
France’s CAC 40 index was up 22 points or 0.4 percent at 5611, following a 1.2 percent jump on Monday.
Germany’s benchmark DAX was up 39 points, or 0.3 percent, at 13829, extending 1.5 percent rise in the previous day.
U.K.’s FTSE 100 climbed 142 points or 2.2 percent at 6645, reflecting the Brexit trade deal. The U.K. market was closed for Boxing Day on Monday.
On German corporate front, shares of software giant SAP SE were gaining 2 percent after the company said its unit Qualtrics International Inc. has filed with the U.S. Securities and Exchange Commission to raise up to $100 million in an initial public offering of common shares.
Among other gainers, Adidas and Deutsche Boerse stock gained 0.8 percent each, and Lufthansa stock climbed 6.9 percent.
Among losers, Siemens and Fresenius traded down 0.6 percent; and Wirecard stock fell 6 percent.
In U.K. GlaxoSmithKline shares gained 3.5 percent and Vectura Group plc shares gained 2.3 percent.
Vectura confirmed that GlaxoSmithKline has not sought to petition the US Court of Appeals for a re-hearing in their ongoing Ellipta litigation.
Wizz Air stock was up 1.7 percent. The airline said its Board has decided to serve restricted share notices on non-qualifying national shareholders.
Car insurance provider Admiral Group Plc stock was up 3 percent after it reached an agreement to sell Penguin Portals Group to to RVU, the comparison division of ZPG Comparison Services Holdings UK Limited.
Further, Unilever stock gained 3.2 percent; AstraZeneca gained 4.4 percent; and Diageo climbed 4.7 percent.
Meanwhile, banking sector was trading down with 4 percent drop in Lloyds Banking Group stock; 3.4 percent decline in Royal Bank; and 2.8 percent drop in Barclays trading.
Source: Read Full Article