European, Asian stocks gain on hope for large US stimulus

Gulf Today Report

European stocks rose on Tuesday on positive brokerage recommendations and gains in economically sensitive sectors due to hope for a larger US stimulus.

The pan-regional STOXX 600 index rose 0.2%, with oil and gas, travel and leisure and banking sectors leading the gains.

Major companies recorded gains due to rebound in crude prices on the hope of a drawdown in US crude oil stockpile. 

"We are happy to see the accommodative stance from policymakers," said Domenico Ghilotti, co-head of research team at brokerage Equita. "Europe is dealing effectively with the pandemic in terms of financial support." 

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Asian stocks 

Asian stocks jumped on Tuesday as investors await President-elect Joe Biden’s promised economic stimulus plan.

Shanghai, Tokyo and Hong Kong were higher. Seoul declined while Sydney swung between gains and losses.

The Shanghai Composite Index rose 0.8% to 3,559.86 and the Nikkei 225 in Tokyo added 0.1% to 28,178.56. 

The Hang Seng in Hong Kong gained 0.5% to 28,037.51.

The Kospi in Seoul shed 2.9% to 3,056.42 while the S&P-ASX 200 in Sydney was unchanged at midday at 6,697.40. New Zealand and Singapore retreated while Jakarta advanced.

In a report, Cesar Perez Ruiz of Pictet Wealth Management said, "investors found optimism in the prospect of further fiscal stimulus. President-elect Biden has a better chance of pushing through his agenda and delivering sorely-needed stimulus and support.”