European stocks rose on Wednesday, buoyed by expectations that the European Union will announce a massive stimulus package for the region’s recovery efforts, although investors were watching China-EE. United States tensions
The Stoxx Europe 600 index
SXXP
up 0.3% to 350.21, after a gain of 1% Tuesday, with the German DAX
DAX
0.9% and the French CAC 40
PX1
earn 1%. The FTSE 100 index
UKX,
it also increased by almost 1%. The euro
EURUSD
decreased 0.1% to $ 1.0970 and the pound sterling
GBPUSD
it fell 0.2% to $ 1.2307.
The European Commission will present its proposal for a rescue plan, possibly supporting the efforts of France and Germany for a fund of 500 billion euros (547 billion dollars) to support recovery efforts. The so-called Frugal Four (Austria, Sweden, Denmark and the Netherlands) are opposed to this idea, preferring a recovery fund only loaned.
“This will open a long and intense period of negotiations between member states on the financial instrument that could be used (loans or grants) to help countries in need,” said Christopher Dembik, chief of macro analysis at Saxo Bank, in a statement. customer note. “A final agreement is expected at the next meeting of the Council of the EU in June. Meanwhile, Europe is once again losing the precious time necessary to fight the crisis.
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European Central Bank President Christine Lagarde said during a question and answer session on Wednesday that the mild pandemic scenario of the bank’s withdrawal may be out of date and it would be difficult to predict how bad the economy will be. will be affected.
Dow Jones Industrial Average Futures
YM00
he gained over 200 points, placing Wall Street for a second day of solid earnings. These have been largely fueled by the hope that the global economy has weathered the worst of the consequences of the pandemic.
But tensions between China and the United States persisted, and Washington considered a series of sanctions to punish Beijing for its crackdown on Hong Kong, Bloomberg News reported, citing people familiar with the subject.
Police used pepper spray against thousands of protesters in Hong Kong to protest China’s security bill and a separate bill that would make the Chinese national anthem a mockery.
Among moving stocks, airline and travel stocks increased Tuesday’s gains, with TUI AG
YOU
up 27% after the 30% increase on Monday. Spain’s decision to reopen foreign tourists before July 1 is important to the tour operator, who is struggling to survive without receiving money.
As of May 10, its cash and available facilities amounted to 2.1 billion euros, which, according to analysts at Morgan Stanley, is not enough to cope with an extended period of minimum income with monthly consumption of ” about 600 million euros.
International Consolidated Airlines Group SA
IAG
up 5%.
Sika AG shares
SIKA
drop of more than 5% after the French manufacturer of construction materials Cie. of Saint-Gobain SA
SGO
He said he had sold an almost 11% stake worth 2.56 billion francs in the chemical manufacturer.