European stocks rose on Monday on hopes of a final economic boost ahead of the US election, as well as a clear election day outcome.
The Stoxx Europe 600 SXXP,
gained 1%, with similar sized gains for the German DAX DAX,
the French CAC 40 PX1,
et le UK FTSE 100 UKX,
The winners included steelmakers ThyseenKrupp TKA,
and ArcelorMittal MT
increased by 202 points.
Politico reported that House Speaker Nancy Pelosi, along with Treasury Secretary Steven Mnuchin, consulted Federal Reserve Chairman Jerome Powell about their stimulus package discussions. It’s unclear what role, if any, the Fed will play. The central bank played a role in the first stimulus package. Pelosi separately said in an interview with CBS that airlines should not lay off workers and the aid would be retroactive.
Aside from a brief drive, President Donald Trump spent the weekend at Walter Reed Medical Center, recovering from COVID-19. In or out of the hospital, recent public opinion polls have decidedly turned to his challenger, former Vice President Joe Biden.
“Financial markets have lowered their expectations of prolonged uncertainty slightly after polling day and now seem a little less worried about a closed and contested election,” Barclays strategists said in a note to clients. Strategists have said Trump’s hospitalization could prove to be the “political trigger” that will bring a stimulus deal to the finish line.
Also on the political front, British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen issued a statement urging their negotiations to “work intensively” to forge a trade deal, as Johnson also said in an interview that ‘he was ready to block trading without one.
News on the coronavirus front continued to be concerning, with Paris on the verge of closing bars, although its restaurants will remain open and Marseille will also reopen theirs.
shares fell 50% as it announced it would suspend operations of all of its 536 Regal theaters in the United States and its 127 Cineworld and Picturehouse theaters in the United Kingdom from Thursday. Cineworld said it was “evaluating several sources of additional cash.”