Stock markets gained ground Tuesday while investors mulled the level of US electoral uncertainty after President Donald Trump returned to the White House following treatment for Covid-19.
As Trump was discharged from hospital, political concerns persisted ahead of the presidential election on November 3.
The dollar rose against the pound but declined against the yen, while oil prices shot higher amid strikes on Norwegian offshore platforms and a hurricane heading towards US installations.
In afternoon exchanges, the FTSE 100 index was 0.2 percent higher in London, while the Dow Jones index had gained the same in early New York trades.
Global equities had rebounded Monday on reports of Trump’s improving health, and as US lawmakers appeared to edge towards agreeing on a new stimulus package.
The election was still a big question mark, however.
“This is still going to be a controversial, drawn-out election with the potential added uncertainty of a challenge to the result,” OANDA analyst Craig Erlam told AFP.
Investors were also unclear over the chances of a new US stimulus package that would help counteract fallout from the pandemic in the world’s biggest economy, dealers said.
Analysts said Trump’s positive test for Covid-19 could be the jolt US lawmakers needed to finally agree a deal.
Stimulus talks have revived with a series of mostly phone meetings between Treasury Secretary Steven Mnuchin and Democrat House leader Nancy Pelosi.
“As far as traders are concerned, talking is preferable to being in a stand-off and not engaging with each other,” noted David Madden, analyst at CMC Markets UK.
London – FTSE 100: UP 0.2 percent at 5,956.13 points
Frankfurt – DAX 30: UP 0.7 percent at 12,919.12
Paris – CAC 40: UP 0.7 percent at 4,904.60
EURO STOXX 50: UP 0.5 percent at 3,237.43
New York – Dow Jones: UP 0.2 percent at 28,199.45
Tokyo – Nikkei 225: UP 0.5 percent at 23,433.73 (close)
Hong Kong – Hang Seng: UP 0.9 percent at 23,980.65 (close)
Shanghai – Composite: Closed for a holiday
Euro/dollar: UP at $1.1784 from $1.1783 at 2100 GMT
Dollar/yen: DOWN at 105.66 yen from 105.75 yen
Pound/dollar: DOWN at $1.2963 from $1.2979
Euro/pound: UP at 90.92 pence from 90.79 pence
West Texas Intermediate: UP 3.6 percent at $40.64 per barrel
Brent North Sea crude: UP 3.3 percent at $42.67