Home / Business / European equities and US stock futures rise as US stimulus hopes to stay alive

European equities and US stock futures rise as US stimulus hopes to stay alive



A waitress serves a customer on the restaurant terrace in Marseille, southeastern France on October 5, 2020

nicolas tucat / Agence France-Presse / Getty Images

European equities and US stock futures traded higher on Friday as investors kept hopes of a US stimulus deal alive at the end of a positive week for markets.

The Stoxx Europe 600 index
SXXP,
+ 0.22%

it was up 0.4% and 1.5% for the week, with another session at the end. The German DAX
DAX,
-0.10%

was flat, while the French CAC 40
PX1,
+ 0.30%

and FTSE 100
UKX,
+ 0.69%

increased by 0.4% each.

US Stock Futures
ES00,
+ 0.39%

NQ00,
+ 0.27%

has risen across the board, with Dow’s futures
YM00,
+ 0.36%

on over 100 points. The major indices closed higher on Thursday, dispelling concerns over a contested election result and hoping for a stimulus package, even if it doesn’t come until after that battle for the White House.

President Donald Trump said on Thursday that stimulus talks with Democrats had become productive, following his decision just days before canceling them. Hours later, House Speaker Nancy Pelosi said she still wanted a big deal.

Elsewhere, a private indicator of China’s service sector activity showed faster-than-expected growth in September. Mining stocks, sensitive to news about China, a large consumer of natural resources, were higher. Shares of Anglo American UK: AALrose 2% and Fresnillo UK: FRES gained 2.2%.

Economic news was less positive for the UK, where the economy grew only 2.1% in August, disappointing 4.6% growth forecast and the slowest monthly gain since the coronavirus early blocks. France experienced a slowdown in industrial production in August.

Rising oil prices were lifting stocks of heavily weighted oil companies. Oil prices
CL.1,
-0.99%

BRN00,
-0.85%

It closed higher on Thursday as Hurricane Delta forced the shutdown of more than 90% of crude oil production in the Gulf of Mexico. Crude oil prices remained stable on Friday.

Shares of the total
TOT,
+ 1.04%
,
Royal Dutch Shell
RDSA,
+ 1.92%

and BP
BP,
+ 1.90%

all increased by more than 1%.

The shares related to semiconductors were inspired by the shares of NXP Semiconductors
NXPI,
+ 0.92%

he recovered late in the United States on Thursday. The chip maker improved the outlook for the quarter.

And advanced micro devices
AMD,
-0.20%

is in advanced talks to buy rival chip maker Xilinx in a deal that could be worth more than $ 30 billion, the Wall Street Journal reported, citing people familiar with the matter.

In Europe, shares of Infineon Technologies
IFX,
+ 1.62%

and those of Dialog Semiconductor were up 1.6%
DLG,
-0.05%

increased by 1.6%.

Rolls-Royce Holdings shares
RR,
+ 15.48%

are on the rise again, with a 13% increase. The shares have gained 95% this week but remain 67% lower since the beginning of the year.

The London Stock Exchange
LSE,
+ 0.45%

agreed to sell its entire stake in the parent company Borsa Italia to Euronext
ENX,
-3.75%

in a deal worth 4.33 billion euros (5.09 billion dollars). LSE shares rose 0.8%, while Euronext shares rose 0.9%.


Source link