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European stocks rise as possible 'blue sweep' in Georgia lifts U.S. stimulus hopes

Published 01/06/2021, 04:22 PM
Updated 01/06/2021, 04:30 PM
© Reuters.
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(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
Jan 6 (Reuters) - European stocks rose on Wednesday, with
economically sensitive sectors such as energy and banks leading
the gains, as investors braced for a Democratic win in crucial
U.S. Senate run-off election in Georgia that could drive bigger
fiscal stimulus.
The pan-European STOXX 600 index .STOXX rose 0.4%, while
UK's FTSE 100 .FTSE edged 0.8% higher while Germany's DAX
.GDAXI gained 0.3%.
Oil majors BP BP.L , Royal Dutch Shell RDSa.L and Total
TOTF.PA gained as crude prices rose to their highest since
February 2020 on Saudi Arabia's pledge to cut output more than
expected in a meeting with allied producers. O/R
Banks .SX7P advanced the most, up 2.5%, while other
cyclical sectors such as automakers .SXAP and insurers .SXIP
added more than 1%.
While the final votes are yet to be counted in the run-off
elections, markets appeared to price in a 'blue wave' that could
usher in larger fiscal stimulus and pave the way for
President-elect Joe Biden to push through greater corporate
regulation and higher taxes. In Europe, a pullback in healthcare .SX3P , food & beverage
.SX3P and tech .SX8P shares capped gains in major bourses.

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