Coronavirus: European equities climb as US Treasury Secretary calls for further stimulus – Yahoo Finance


Shares in Europe rose on Wednesday after U.S. Treasury Secretary Steve Mnuchin urged lawmakers to approve new stimulus measures to tackle the economic fallout from the coronavirus pandemic.

Signaling that the Trump administration may be willing to back a package worth up to $ 1.5 billion (£ 1.1 billion), Mnuchin also suggested he was prepared to consider the proposals. Democrats to provide more funding to state and local governments.

While both sides remained stuck in the dispute on Tuesday, funding has been one of the main stumbling blocks in the prolonged standoff between Democrats and Republicans.

The pan-European STOXX 600 index (^ STOXX) increased by around 1.7%, while the London FTSE 100 (^ FTSE) rose by more than 1.5%.

The German DAX (^ GDAXI) climbed around 1.8%, as did the CAC 40 (^ FCHI) of France.

The gains in Europe follow a mixed trading session in Asia.

The Shanghai SSE Composite Index (^ SSEC) was down 0.17%, while the Hang Seng Index (^ HSI) closed nearly 0.4% in the red in Hong Kong.

But Japan’s Nikkei (^ N225) rose about 0.5% and South Korea’s KOSPI Composite Index (^ KOSPI) climbed more than 0.6%.

Australia’s ASX 200 (^ AXJO) rose more than 1.8% as the market closed, even after a record contraction in economic output in the second quarter pushed the country into its first recession in 30 years.

Futures were also showing a positive open on Wednesday for stocks in the United States. Wall Street traders were also encouraged by favorable US economic data and the moderation of coronavirus infections.

While construction spending was almost flat in July, the June data was revised up on Tuesday. Data from the Purchasing Managers’ Index suggests that the country’s manufacturing sector continues to rebound.

Futures on the S&P 500 (ES = F), which hit a new record on Tuesday, rose more than 0.5%. Dow Jones Industrial Average (YM = F) futures also rose around 0.5%.

Futures on the Nasdaq (NQ = F), which were supported by a continued rally in Apple (AAPL) and Tesla (TSLA) stocks, rose more than 1%.

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