Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

European Stocks Edge Largely Higher; Additional Stimulus Hopes Rise

Stock MarketsJan 07, 2021 08:53
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Peter Nurse - European stock markets edged largely higher Thursday, with a strikingly broad range of stocks hitting all-time highs as investors looking for additional fiscal spending following a projected win for Democrats in the U.S. Senate.

At 4:15 AM ET (0915 GMT), the DAX in Germany traded 0.5% higher and the CAC 40 in France rose 0.4%, while the U.K.'s FTSE index dropped 0.3%.  All-time highs were posted by companies in both growth and cyclical sectors, from Germany's Zalando (DE:ZALG) and Delivery Hero (DE:DHER) to miners such as Rio Tinto  (LON:RIO)  and energy companies Neste Oil  (HE:NESTE), Enel (MI:ENEI) and Solaria (MC:SLRS).

The Democrat pair of Jon Ossoff and Raphael Warnock are projected to have won the two Senate seats in Georgia, raising expectations that President-elect Joe Biden will have an easier path to push his agenda, including more stimulus measures, when his administration takes over in a couple of weeks.

This optimism appears to be undimmed by violent scenes in Washington on Wednesday, as supporters of President Donald Trump stormed the Capitol where lawmakers were meeting to confirm Biden’s victory in November’s presidential election.

Congress early Thursday confirmed the election of Biden as president, paving the way for him to be swore in on Jan. 20.

Back in Europe, the Covid-19 pandemic remains a key concern, with a number of countries forced back into lockdown as new cases continued to mount. However, the European Medicines Agency approved Moderna’s Covid-19 vaccine on Wednesday, adding to options as authorities throughout the region try to organise large-scale vaccination programs.

In corporate news, LafargeHolcim (OTC:HCMLY) stock rose 0.8% after the world’s biggest cement maker said Thursday it plans to buy Firestone Building Products from Bridgestone Americas for $3.4 billion.

Ryanair (LON:RYA) stock fell 2.4% after the low-cost airline slashed its annual traffic forecast to below 30 million passengers due to fresh lockdowns in the United Kingdom and Ireland.

German factory orders surprised to the upside, climbing 2.3% on the month in November when a drop of 1.2% had been expected, while euro-zone flash inflation figures and retail sales are due for release later Thursday.

Oil prices pushed higher Thursday, with a bigger-than-expected drop in U.S. crude stockpiles adding to the bullish tone created by Saudi Arabia’s pledge earlier this week to cut output by one million barrels per day in February and March, once the chaos in Washington dissolved.

Crude inventories were down by 8 million barrels in the week to Jan. 1 to 485.5 million barrels, the Energy Information Administration said on Wednesday. This was much more than expected, and followed the American Petroleum Institute reporting a draw of 1.663 million barrels on Tuesday.

U.S. crude futures traded 0.9% higher at $51.09 a barrel, moving decisively above the $50 level for the first time since February, while the international benchmark Brent contract rose 0.6% to $54.64. 

Elsewhere, gold futures rose 0.7% to $1,921.50/oz, while EUR/USD traded 0.4% lower at 1.2282.


European Stocks Edge Largely Higher; Additional Stimulus Hopes Rise

Related Articles

Airbus raises forecasts after strong first half
Airbus raises forecasts after strong first half By Reuters - Jul 29, 2021

PARIS (Reuters) -Europe's Airbus sharply raised its forecasts for full-year deliveries and earnings after reporting better-than-expected half-year results on Thursday. The world's...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email