European Shares Seen Up On Stimulus Optimism

European stocks are likely to open higher on Wednesday after the White House unveiled a $916 billion Covid-19 relief bill in a final dash to break a months-long logjam over new aid for the coronavirus-stricken U.S. economy.

In a statement on Twitter, Treasury Secretary Steven Mnuchin said he had talked the plan over with Republican leaders as well as Trump and the new proposal includes “money for state and local governments and robust liability protections for businesses, schools and universities.”

The European Central Bank meets Thursday, with analysts expecting the central bank to increase and extend the pandemic emergency purchase program.

Asian markets hit fresh record highs while gold and the dollar dipped on improved risk sentiment. Oil edged lower after industry data showed that U.S. crude oil, gasoline and distillate stocks rose sharply last week.

Destatis is scheduled to issue German foreign trade figures for October later in the day. Exports are forecast to climb 1.2 percent month-on-month, slower than September’s 2.3 percent increase. Meanwhile, imports are expected to rise 1 percent, reversing a 0.1 percent fall.

Overnight, U.S. stocks edged higher as positive developments on the vaccine front and hopes of a fiscal stimulus outweighed concerns about soaring Covid-19 cases and new lockdowns.

The Dow Jones Industrial Average rose 0.4 percent, while the S&P 500 inched up 0.3 percent and the tech-heavy Nasdaq Composite gained half a percent to close at fresh record highs.

European stocks ended mostly higher on Tuesday as investors tracked updates on Brexit negotiations and looked ahead to the upcoming European Central Bank’s monetary policy meeting.

The pan European Stoxx 600 inched up 0.2 percent. The German DAX and the U.K.’s FTSE 100 finished marginally higher, while France’s CAC 40 index eased 0.2 percent.

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