European markets open higher as investors keep an eye on U.S. stimulus talks

European markets open higher as investors keep an eye on U.S. stimulus talks

October 8, 2020
  • The major averages rose sharply on Wednesday after President Donald Trump tweeted support for aid to airlines and other stimulus measures, stoking hopes that a smaller aid package could be passed by lawmakers.

European stocks opened higher Thursday with global investors keeping an eye on ongoing stimulus discussions in the U.S.

The pan-European Stoxx 600 climbed 0.7% in early trade, with travel and leisure stocks jumping 2.2% to lead the way as almost all sectors and major bourses entered positive territory.

The positive trend in European markets comes as U.S. stock index futures were modestly higher in Thursday early morning trading. This comes after the Dow on Wednesday posted its best day in months as investors await updates on the ongoing fiscal stimulus discussions.

The major averages rose sharply on Wednesday after President Donald Trump tweeted support for aid to airlines and other stimulus measures, stoking hopes that a smaller aid package could be passed by lawmakers. 

Stocks fell on Tuesday after Trump said that he told his administration to end coronavirus stimulus talks with Democrats until after the election. 

Federal Reserve officials expressed concern during their September meeting that the U.S. economic recovery could stall if Congress didn't pass more fiscal stimulus, according to released minutes.

Stocks in Asia-Pacific were mostly higher in Thursday trade, with shares in Hong Kong lagging among the region's major markets.

There are no major earnings or data releases in Europe Thursday.

– CNBC's Pippa Stevens and Jeff Cox contributed to this market report.

Source: Read Full Article