Today the European markets opened mostly higher, helped by increasing confidence of a U.S. stimulus package that is reinforcing the positive sentiment generated by the unfolding of Covid-19 vaccines.
The German DAX traded mostly motionless, the French CAC 40 rose 0.4% and the British FTSE climbed 0.7%.
Due to investors optimism about the vaccine release, global stock markets have seen strong gains over the last few weeks. People believe that in 2021 we will have an economic recovery. Aiding to the confidence gain is the idea that a bipartisan, $908 billion coronavirus relief plan is gaining traction in the U.S. Congress.
The European Central Bank is widely expected to increase its bond buying next week and the U.S. Federal Reserve is likely to alter its guidance around its asset purchase plan later in December.
Earlier Friday morning, German industrial orders rose by 2.9%. Claus Vistesen said, ” The increase at the start of Q4 lifted the level of new orders to 0.8% above its pre-virus level, pointing to significant upside to manufacturing production, which was still languishing some 10% below its pre-Covid level at the end of Q3.”
Talks between the EU and U.K. negotiators to secure a Brexit deal have continued Friday, but a U.K. government source warned chances for a breakthrough were lessening while France said it would reject any deal if it is considered unsatisfactory to French interests.