European stocks may follow mostly higher Asian peers after the strong gains recorded overnight on the Wall Street. Investors’ hopes of an economic recovery has been raised with U.S. President Donald Trump’s signing of the hefty pandemic and spending bill and the Brexit trade deal.
Trump signed a $900 billion coronavirus economic aid package and $1.4 trillion package to fund government agencies, averting a federal government shutdown that would have started on Tuesday.
Investor sentiment will also reflect the decision by the U.S. House of Representatives to back Trump’s proposal and vote for increasing the stimulus checks to $2,000 from $600. The proposal has now been sent to the Republican-controlled Senate for a vote.
Trump had previously resisted signing the legislation, complaining that $600 payments for most individuals were too low.
Further, the Brexit free trade deal agreed between the EU and Britain has been welcomed by the European Automobile Manufacturers Association, while saying it needs to understand the details.
The massive roll-out of coronavirus vaccinations across the Europe, U.S., U.K, and many other countries will also boost investor hopes for a return to normalcy in coming months, despite concerns over the spread of new coronavirus variants.
In the economic news, Sweden foreign trade data is due at 3.30 am ET today.
Asian stock markets are mostly higher on Tuesday following the strong U.S. gains.
The Japanese market is notably higher, and Nikkei 225 index breached a nearly 30-year high. It has traded above 27,000 for the first time since April 1991.
On the Wall Street, stocks closed higher on Monday in reaction to news that Trump has finally signed the government spending and coronavirus relief bill. Meanwhile, trading activity remained subdued ahead of the New Year’s Day holiday on Friday.
The Dow climbed 0.7 percent to 30,403.97; the Nasdaq rose 0.7 percent to 12,899.42; and the S&P 500 advanced 0.9 percent to 3,735.36.
The major European markets also closed higher on Monday. The German DAX Index increased 1.5 percent and the French CAC 40 Index jumped 1.2 percent. The U.K. market was closed for Boxing Day.
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