European stocks edged higher on Monday, alongside Asian shares, and US Futures, despite mixed macro data from China. Positive talks between US officials about a “possible” stimulus deal prior to the elections has been sustaining market sentiment this morning but it was not just that. Acceleration in the number of Covid-19 infections has made investors expect further government support on a short-term basis and it seems they are already pricing that in, with the nature of the support depending on who wins the upcoming presidential election.
European investors remain focused on Brexit with surprisingly positive developments to start the week with the UK Parliament potentially forcing Prime Minister Boris Johnson to rewrite or reconsider its Internal Market Bill. This may revive stalling talks with the EU bloc after investors were disappointed to see Boris Johnson ready to walk away from the table without any deal. However, despite this early positive trading mood, investors will remain cautious and monitor corporate news as the earning season continues.
Photo by Alex Motoc.
All European benchmarks are trading higher, led by insurers and the banking sector, with the French CAC-40 the best performer as the market now heads up towards 5,000pts.
