LONDON – European equities rose on Thursday, following overnight gains in the Asia-Pacific markets, following a rise in US futures.
The pan-European Stoxx 600 gained 0.5% in early trade, with core resources adding 1.2% to drive gains as all major sectors and stock markets entered positive territory.
The momentum for European action comes after a similarly optimistic session in Asia-Pacific overnight, stimulated by US trading; Asian stocks rose mostly on Thursday, after the S&P 500 rose to a record high on Wednesday.
In the long run, US futures rose in premarket trading, suggesting that Wall Street could extend gains that propelled the S&P 500 to record levels this week.
Investors emerged during Wednesday’s session in the final minutes of the Fed meeting, which showed that officials intend to keep pace with asset purchases at the same time as the central bank works to support stable prices and maximum employment.
Meanwhile, President Joe Biden spoke in Washington on Wednesday about his administration’s $ 2 trillion infrastructure plan, which includes a 28% increase in the corporate tax rate, and said he was willing to negotiate the proposed tax increase. .
European markets will be boosted by announcements from the UK and European drug regulators on Wednesday about the AstraZeneca / Oxford Covid University vaccine.
Both regulators said that while a link between the vaccine and very rare blood clotting disorders is possible, the benefits of getting the vaccine still outweigh the risks. The UK has said it will offer a different Covid vaccine to those under 30 in the UK, as a precaution.
UBS is holding its annual general meeting on Thursday, while Germany’s industrial orders are expected in February.
There were few significant stock price movements at the beginning of the year, with a 4.4% increase in Johnson Matthey driving the Stoxx 600 after the British chemicals company released a promising outlook for 2021.
At the bottom of the European blue chip index, the British insurer Direct Line Group fell 4.6%.
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