European stocks and US equity futures rise on Chinese stimulus hopes and growth data

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European stocks and US stock futures climbed to start a new week, gaining on hopes of a US stimulus package and after Chinese growth data showed the economy continues to recover from the COVID-19 pandemic.

Trading was disrupted by a glitch at Euronext, which tweeted that a technical issue had halted trading of all products and that it was working to resolve the issue. This affected trading in Paris, where the French CAC 40 FR: PX1 was up 0.8% before the shutdown, as well as trading in Belgium, Portugal, Ireland and the Netherlands.The Stoxx Europe 600 SXXP index,
+ 0,37%
rose 0.5% to 369, after falling 0.8% last week and the German DAX DAX,
+ 0,01%
increased by 0.3%.

Le FTSE 100 UKX,
-0,19%
was flat. UK stocks struggled as the pound GBPUSD,
+ 0,65%
regained strength on Monday, up 0.7% to $ 1.3,000. The pound ignored a downgrade in UK ratings by rating agency Moody’s, which raised concerns about the economic impact on the economy and fears of a “no deal” Brexit.

Some have blamed the pound’s rise on British lawmaker Michael Gove, who said on Sunday the door was “still ajar” for post-Brexit talks with the European Union, after Prime Minister Boris Johnson said on Friday that the trade negotiations would not proceed without a change of position vis-à-vis the single currency region.

Futures Dow YM00,
+ 0,63%
climbed 0.8% or more than 200 points, with the S&P 500 ES00,
+ 0,74%
and future Nasdaq-100 NQ00,
+ 1,00%
up about 1% each, after Wall Street shares closed mostly higher on Friday and posted gains for the week.

House Speaker Nancy Pelosi on Saturday set a 48-hour deadline for the White House to strike a deal with Democrats to agree on a stimulus package ahead of the presidential election. She added that she was “optimistic” about a deal, after talks late Saturday with Treasury Secretary Steven Mnuchin.

“The markets, for now, are just relieved that at least the two sides are still talking to each other. They also don’t seem concerned that Republicans in the U.S. Senate seem unlikely to pass a massive stimulus bill, as they seek to clear some air between themselves and a president well behind in the game. polls, ”Jeffrey Halley, senior market analyst at OANDA, said in a statement. note to customers.

Many consider a stimulus package to be vital, with U.S. coronavirus cases turning into a third wave. As of Friday, 70,000 new cases were reported, the most since July.

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Investors will hear from several central bankers on Monday, including Federal Reserve Chairman Jerome Powell and European Central Bank President Christine Lagarde.

Data from China showed the economy grew 4.9% in the third quarter. While falling short of expectations, China’s growth is now closer to forecasts made earlier this year before the deadly pandemic began to sweep the world.

This contrasts with Europe, where “the latest round of COVID-19 curfews threaten to derail any interim economic progress that has been made,” said Richard Hunter, head of markets at Interactive Investor, in a note to clients . The United States, meanwhile, recorded 70,000 new cases on Friday, the highest number since July.

A busy week of results began on Monday with results from several European companies.

Actions de Julius Baer BAER,
+ 5,39%
climbed nearly 5% after the Swiss private banking group reported an increase in assets under management and gross margin, which analysts at Jefferies said turned out to be stronger than expected. The company added that the 2020 results would be affected by goodwill impairments, due to its Italian asset and wealth company.

Philips PHIA,
+ 2,86%

PHG,
+ 3,76%
reported that third quarter net profit exceeded expectations. The Dutch medical technology group said the company is aiming for accelerated sales growth and higher profitability in the 2021-2025 period. Shares rose nearly 3% before trading stopped.

Danone Group
BN,
+ 1,38%
announced a drop in sales in the third quarter, lower than analysts’ expectations. But the food giant restored direction for the full year and presented a full review of the organization and portfolio. Danone shares rose 2.4% before trading ended.

On the downside, the shares of SAAB SAAB.B,
-11,95%
slipped 7.5% after the Swedish defense group reported lower operating profit for the third quarter. “Due to the ongoing recovery and the long recovery, SAAB now sees an increased risk due to the effects of COVID-19,” Micael Johansson, President and CEO, said in the income statement.

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