On Monday, a basket of European bourse had marked up their best closing highs in more than ten months with Frankfurt’s DAX hitting a record closing high as optimisms over a Brexit trade deal reached in the Christmas eve, a long-awaited US stimulus bill alongside progresses on pandemic vaccine candidates had lifted up market participants’ morale in the thin-volume post-holiday trading session.
In actuality, a narrow Brexit trade deal reached on Thursday evening that downsized the scale of disruptions stemmed off Britain’s departure from the bloc, had largely galvanized the European shares’ rally on Monday, while an introduction of a cross-border Eurozone vaccination program had also stepped up hopes of a pandemic-free second half of 2021.
On top of that, in a sudden turn of event, the US President Donald Trump had signed off a $2.3 trillion fiscal package bill that included a $892 billion in pandemic relief aid, potentially averting a Government shutdown by Tuesday and proffering a lifeline to at least 1.4 million laid-off Americans who had been heavily reliant on state unemployment benefits over the recent months.
Besides, followed by the reveal of strong economic fundamentals over the Christmas holidays, the regional pan-European STOXX 600 rose 0.7 per cent, marking up a fourth straight session of gains.
European shares hit 10-month peak on Brexit trade deal hope, US stimulus
Citing statistics, in the day’s European market wind down, a majority of indices had winded up the day broadly higher with Frankfurt’s DAX leading the tallies of the gains, while French CAC 40 torrented 1.20 per cent to 5,588.38 and Frankfurt’s DAX rocketed as much as 1.49 per cent to 13,790.29.
Elsewhere in the Europe, Madrid’s benchmark IBEX 35 added 0.54 per cent to 8,155.60. Money markets in London had been shut down due to a Boxing day holiday. Meanwhile, referring to investors’ relief over a narrow Brexit trade deal clinched on Thursday evening which had stoked hopes of a quicker economic recovery, a Chief Market Strategist FXTM, Hussein Sayed said, “We can finally breathe a big sigh of relief and say that chaos over the stimulus bill is over.
A sell-off has been averted and this could provide one last boost to risk assets in the last four trading days of the year. ”