LONDON – European markets rose on Wednesday as investors hoped to reach a Brexit trade deal amid concerns over the long-delayed recognition of the US corona virus trigger package.
Pan-European stocks 600 index rose 0.5% during morning trade, while auto stocks rose 1.6%. Health stocks were down 0.3%.
On Tuesday, EU President Brexit negotiator Michael Barnier said the camp was making a “final push” to negotiate a Brexit trade deal with Britain, but differences over fishing rights persisted. There have been positive reports about the talks, with ITV’s Robert Beston said a deal could be reached on Wednesday.
Stateside, President Donald Trump On Tuesday he suggested that the $ 900 billion Govt relief bill passed by Congress earlier this week should not be signed. Trump called the move “inappropriate” humiliation and urged lawmakers to make a number of changes, including large direct payments to individuals and families.
In Asia, shares were high despite Trump’s comments. Outside Japan, Asia-Pacific stocks MSCI’s broadest index rose 0.6%.
On Wall Street, stock futures traded slightly higher overnight, recovering largely from previous declines after Trump expressed concerns with the new Govt relief package.
Back in Europe, France reopened its border to the UK on Wednesday, with passengers arriving at the border expected to have a negative corona virus test result. This comes after a ban on the French people and goods from the UK amid concerns about the fast-spreading Govt strain first being identified in the south-east of England.
Concerns about the economic impact of Britain’s drastic new locking measures aimed at curbing the spread of the new corona virus strain, as well as the current Brexit uncertainty, have recently weighed on investor sentiment.
Travel and leisure stocks were buoyed by the news on Wednesday that France had lifted its travel restrictions. IAG, the parent company of British Airways, is leading the sector by 3%.
Looking at individual stocks, Daimler Stocks rose over 3% following the Handelsplot report that the German automaker plans to list its trucking business.
By European standards, the sports workshop fell nearly 2%, while food kit provider Halofresh fell nearly 3%.