European Shares Seen Up As Biden Signs Stimulus
European stocks look set to open broadly higher on Friday amid expectations that the signing of the American Rescue plan, progress in vaccinations against Covid-19 and ultra-low interest rates will help charge global growth.
Hours after signing his $1.9 trillion stimulus bill into law, U.S. President Joe Biden pledged aggressive action to speed vaccinations and move the country closer to normality by July 4.
Asian markets are trading mostly higher, though Chinese and Hong Kong markets turned volatile as investors cashed in on recent gains.
The dollar firmed up and U.S. Treasury yields inched higher, weighing on gold. Oil slipped but stayed near $70 a barrel on demand recovery hopes.
Monthly GDP estimate, industrial production and foreign trade reports from the U.K. are due later in the session, headlining a busy day for the European economic news.
Across the Atlantic, trading may be impacted by reaction to the latest U.S. economic data, including reports on producer price inflation and consumer sentiment.
U.S. stocks hit record highs overnight as investors cheered a $1.9 trillion spending injection from the federal government and data showing a less-than-expected rise in jobless claims last week.
The Dow Jones Industrial Average rose 0.6 percent, the S&P 500 gained 1 percent and the tech-heavy Nasdaq Composite soared 2.5 percent.
European stocks advanced on Thursday after the European Central Bank pledged to speed up its bond buying program over the next quarter based on market conditions.
The pan European Stoxx 600 gained half a percent. The German DAX and the U.K.’s FTSE 100 both edged up around 0.2 percent while France’s CAC 40 index added 0.7 percent.
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