You are using an older browser version. Please use a supported version for the best MSN experience.

European Stocks Advance With Oil, Banks on U.S. Stimulus Bets

Bloomberg logoBloomberg 8/10/2020 Ksenia Galouchko

(Bloomberg) -- European equities gained, led by cyclical sectors, as investors eyed U.S. stimulus discussions.

The Stoxx Europe 600 Index gained 0.3% by the close in London. Banks and oil shares were the biggest advancers as Brent rose on growing signs that consumption in key regions is edging higher.

Markets bounced after turning lower on news that China will sanction 11 Americans in retaliation for similar measures imposed by the U.S. on Friday, but tech stocks remains under pressure. At the same time, investors are watching whether Washington can pass another round of stimulus after Treasury Secretary Steven Mnuchin said he’d listen to any proposal offered by Democrats, and House Speaker Nancy Pelosi said she hopes talks with the White House will resume soon.

“With U.S.-China tensions and uncertainties rising further, no longer-term U.S. fiscal deal in place yet, and the good second-quarter earnings season now well reflected in prices, the air for risk assets is becoming thinner, especially given lofty valuations among ‘corona-winners’,” said Comerzbank AG strategists, including Alexander Kraemer and Florian Regnery.

a screenshot of a cell phone: European equity investors weigh U.S. stimulus negotiations © Bloomberg European equity investors weigh U.S. stimulus negotiations

On Saturday, Trump signed four executive orders to maintain some assistance, including for unemployment benefits, a temporary payroll tax deferral, eviction protection and student-loan relief.

“One thing you can say for certain, markets these days are not boring,” said Benjamin Jones, a senior multi-asset strategist at State Street Bank. “The main focus for markets is whether the U.S. can agree on the next round of fiscal stimulus.”

As the S&P 500 approaches record-high levels, the Stoxx 600 index is still 16% below its February historic peak. The rally in U.S. equities has been driven by tech giants, such as Inc. and Apple Inc., while the European market doesn’t have such an extensive presence of technology companies.

For more articles like this, please visit us at

©2020 Bloomberg L.P.

Video: Dow Rises 200 Points on Trump Coronavirus Relief Executive Orders (TheStreet)

image beaconimage beaconimage beacon