European Stock Significantly Higher

European stock markets are seen opening largely higher Friday, helped by increasing confidence of a U.S. aid package that is reinforcing the positive sentiment generated by the rollout of Covid-19 vaccines.

The DAX futures contract in Germany traded 0.2% higher, the FTSE 100 futures contract in the U.K. rose 0.4%, while the CAC 40 futures in France dropped 0.1%.

Adding to the confidence is the idea that a bipartisan, $908 billion coronavirus relief plan is gaining traction in the U.S. Congress. This potential deal was initiated by Democrat leaders, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer.

Global stock markets have seen strong gains over the last few weeks, helped by investor optimism that vaccine developments will support a global recovery in 2021. The U.K. is set to roll out the Pfizer-BioNTech Covid-19 vaccine as early as next week.

Elsewhere, talks between the EU and U.K. negotiators to secure a Brexit deal continued, although a U.K. government source warned chances for a breakthrough were withdrew.

Looking at economic data Friday, German factory orders increased by 2.9% in October, a rebound from September’s revised 1.1%, but the major release will be the monthly U.S. official employment report. This is expected to show an addition of 469,000 jobs for November, a slowdown from the 638,000 seen in October.