By Steve Goldstein
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 1%, with similarly sized gains for the German DAX , the French CAC 40 and the U.K. FTSE 100 . Gainers included steelmakers ThyseenKrupp and ArcelorMittal .
Futures on the Dow Jones Industrial Average rose 202 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. 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 Hospital, 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 negotiations 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’s will re-open theirs as well.
Cineworld shares fell 50% as it said it be suspending operations at all of its 536 Regal theatres in the US and its 127 Cineworld and Picturehouse theatres in the UK from Thursday. Cineworld said it is “assessing several sources of additional liquidity.”
-Steve Goldstein; 415-439-6400; AskNewswires@dowjones.com
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