European stocks rose on Monday on hopes for one last economic stimulus boost to the economy before the U.S. election, as well as a clear result on Election Day.
The Stoxx Europe 600
gained 0.7%, with similarly sized gains for the German DAX
the French CAC 40
and the U.K. FTSE 100
Gainers included steelmakers ThyseenKrupp
Futures on the Dow Jones Industrial Average
rose 152 points.
Politico reported that House Speaker Nancy Pelosi as well as Treasury Secretary Steven Mnuchin consulted Federal Reserve Chair Jerome Powell about their stimulus plan talks. It’s unclear what, if any, role the Fed will play. The central bank did have a role in the first stimulus plan. Pelosi separately said in an interview with CBS that airlines should not fire workers, and that aid will be retroactive.
Apart from a brief car ride, 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 swung decidedly to his challenger, former Vice President Joe Biden.
“Financial markets have lowered their expectations of prolonged uncertainty post-Election Day slightly and now seem a little less worried about a close and contested election,” said strategists at Barclays in a note to clients. The strategists said Trump’s hospitalization may prove to be the “political trigger” that brings a stimulus deal to the finish line.
Also on the politics front, U.K. Prime Minister Boris Johnson and European Commission President Ursula von der Leyen issued a statement urging their negotiators to “work intensively” to forge a trade deal, as Johnson also declared in an interview that he was willing to leave the trading bloc without one.
The news on the coronavirus front continued to be worrying, with Paris on the verge of shutting bars, though its restaurants will remain open, and Marseille is reopening restaurants.
shares fell 31%, as it said it will be suspending operations at all of its 536 Regal theaters in the U.S. and its 127 Cineworld and Picturehouse theatres in the U.K. from Thursday. Cineworld said it is “assessing several sources of additional liquidity.”
shares rose 16% after agreeing to sell its Fort Worth, Texas-based oil and gas products business to Caterpillar
for $405 million in cash. Weir also said the deal will help it realize a $70 million tax benefit and turn it into a “premium mining technology pure play.”