European stocks and Dow futures climb as optimism returns to financial markets

Democratic vice presidential nominee Sen. Kamala Harris (D-CA) and U.S. Vice President Mike Pence participate in the vice presidential debate at the University of Utah on October 7, 2020 in Salt Lake City, Utah.

Pool/Getty Images

European stocks rose on Thursday, as optimism returned to financial markets on signs there might be some stimulus after all for the world’s largest economy.

The Stoxx Europe 600

rose 0.6%, with gainers including German chemicals company BASF

and Dutch microchip equipment maker ASML

The German DAX

rose 0.8%, the French CAC 40

gained 0.5% and the U.K. FTSE 100

edged up 0.1%.

U.S. stocks closed higher Wednesday, with the Dow industrials

up 530 points, after both President Donald Trump and House Speaker Nancy Pelosi indicated support for smaller relief bills, even after Trump pulled the plug on talks over a larger stimulus plan. U.S. stock futures

pointed to further gains on Thursday.

“With coronavirus cases keep rising at a fast pace, and the U.S. elections getting closer, we are reluctant to call for a long-lasting recovery. For now, hopes for partial, standalone, stimulative bills in the U.S. may keep investor morale supported for a while more,” said Charalambos Pissouros, senior market analyst at JFD Group.

The debate between Vice President Mike Pence and Democratic vice-presidential nominee Kamala Harris on Wednesday night was a more traditional clash than the first presidential debate and widely perceived as not having changed the dynamic of the election, in which former Vice President Joe Biden has a commanding lead in polls.

Of stocks on the move, GVC Holdings

jumped 8% after the sports-betting company lifted its profit guidance, helped by a better-than-forecast performance from its BetMGM joint venture with MGM Resorts
GVC reported a net gaming revenue rise of 12% in the third quarter. Rival Flutter Entertainment

rose 4%.

Cigarette maker Imperial Brands

gained 5% after reporting better-than-expected volumes, driven by improved volume trends in several key European markets and in the U.S. It said net revenue performance is slightly ahead of the guidance provided at its half year results, and is expected to be broadly flat on last year at constant currencies.

Shares in TalkTalk

jumped 11% to 94 pence after saying Toscafund Asset Management has made a non-binding offer of 97 pence per share to buy the U.K. telecommunications firm. The proposal contains a number of pre-conditions, including that TalkTalk’s top shareholder, executive chairman Charles Dunstone, support it.

Hargreaves Lansdown

slipped 5% after the asset manager reported flat net new business in the September-ending quarter.

Read More: European stocks and Dow futures climb as optimism returns to financial markets

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