Europe open: Democrat Georgia win, Biden confirmation boost stimulus hopes
European shares were on the rise again Thursday after Joe Biden’s US presidential election victory was confirmed and the Democrats took control of Congress amid extraordinary scenes, sparking hopes of a bigger American Covid stimulus package.
The pan-European Stoxx 600 index rose 0.17% with the UK’s FTSE 100 down 0.39% and Germany’s DAX 0.48% higher.
US futures were higher on the Biden news, shrugging off Wednesday's invasion of the Capitol by a mob incited by President Donald Trump, disrupting the certification of electoral college votes confirming Biden as the 46th President of the US.
"No one can accuse the US of tending to lethargy. Turmoil in Washington D.C. has been largely shrugged off by global markets, as investors bet more stimulus and fiscal expansion from a Democrat-controlled Congress will be the driving force for the upside to show more gains," said Markets.com analyst Neil Wilson.
The Dow Jones industrial average ended the day at the record high even as scenes of protestors entering the Capitol were broadcast. The Dow climbed 438 points, or 1.4%, to close at a record high, having touched the 31,000 level earlier in the session.
"Any whispered concerns about higher taxes and more regulation are being shouted down by the prospect of more spending," Wilson added.
"European markets have shrugged off the scenes since it most think it shouldn’t amount to much more than a rather bizarre, unfortunate (and deadly) footnote in the history of the Trump presidency. Following the protest Joe Biden has now been confirmed as president which should hopefully draw a line under the last four years and deliver more certainty to the market."
In equity news, shares in Lundin Energy gushed after the company won permission to drill an exploration well close to its Solveig discovery in the Norwegian North Sea.
Sainsbury’s stock was higher after the UK supermarket giant lifted full-year profit guidance to at least £330m from the previous guidance of around £270m on higher champagne and steak sales as hemmed in Brits treated themselves over the festive period.
Bargain retailer B&M also reported a strong third quarter with sales up 22.5% on a constant currency basis. The company also said it would return £200m to shareholders with a 20p special dividend.
Delivery Hero slipped as the German food delivery firm said it had raised around €1.2bn by issuing new shares to fund growth.
LafargeHolcim shares were up after the world’s biggest cement maker said it would buy Firestone Building Products from Bridgestone Americas in a deal worth $3.4bn.