New stimuli and the US political environment are driving rises in Europe
The European stock markets are maintaining the good tone of the week as they continue to register gains. They've been influenced today by the following:
- New stimuli announced by the Bank of England
- The wait for the European Central Bank (ECB) to make a move
- The meeting from the Fed this afternoon
In addition, European investors are celebrating the political scenario that seems to be developing in the United States after the elections, since Republicans and Democrats may distribute power between the Senate and Congress, eliminating the ability of Joe Biden or Donald Trump to have the margin to make deep economic reforms.
The main European indices are thus following the trend of Wall Street, which closed yesterday with strong increases, especially the NASDAQ:
- The German DAX registered increases of more than 1% at 11 am (CET)
- the Italian FTSE MIB registered increases of more than 1% at 11 am (CET)
- The Spanish IBEX 35 also registered increases of more than 1% at 11 am (CET)
- The French CAC 40 lagged somewhat, with increases of 0.9%.
Societe Generale is playing an important role in the increases of the French index today, which has exceeded the forecasts of its earnings in the third quarter by reporting a net income of 862 million euros. Its shares were up more than 3% by midmorning.
The FTSE 100 rose less strongly, around 0.33%, pressured by the rise in the pound.
As we see in the graph, the CAC 40 remained more or less in a lateral trend from June to mid-September, as volatility increased due to the increase in coronavirus cases. Throughout this week it has recovered what it lost in the collapse in the last week of October and is approaching the resistance of 5,050 points.
So far, this year, the French index has lost almost 17%.
In 2019, it revalued by 26.3% after falling in 2018 by just over 10%. In the two previous years it advanced between 4% and 9%.
With Admiral Markets UK Ltd you can trade the CAC 40, whether you think it will continue to rise or turn around and fall. How? With contracts for difference (CFDs), instruments that allow you to speculate on the price both up and down. If you want to start trading, you can open a real trading account by clicking on the following banner:
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