European stock market futures soared sharply after generating robust gains in Tuesday trading. The investors also applauded stronger than expected manufacturing and auto data. Improving business activities in China is among the catalysts.
The pan-European Stoxx 600 jumped 1.7% in Tuesday trading, with all major bourses ended the trade in the positive territory. The auto sector is among the best performing area.
The auto sector grew more than 4.4% as China has reported a sharp surge in car sales last month. The shares of leisure and travel companies also rebounded sharply.
The hopes over the US stimulus package have been adding to the trader’s sentiments.
Although state governors have strongly criticized Trump’s strategy of issuing executive orders on the stimulus package, Treasury Secretary Steven Mnuchin has signaled plans of returning to the negotiating table on a fresh federal coronavirus aid package.
China’s auto sales grew 16.4% in July from the year-ago period. This represents the fourth straight month of gains. Auto sales stood around 2.22 million in July, according to the data from the China Association of Automobile Manufacturers. The auto sales are still down 12.7% to 12.37 million vehicles a year to date when compared to the same period last year.
On the negative side, the U.K. has reported its biggest quarterly decline in employment in a decade. The country has experienced a loss of 730000 jobs during the past four months. In addition, wages also declined during the second quarter. The market analysts say the drop in wages and employment numbers are indicating declining living standards.
What Does it Mean for Traders?
- European stock futures are in green.
- Futures on Wall Street are also trading in positive territory.
- The gold price plunged sharply from an all-time high.
- Crude oil prices are steady.
- US dollar stabilized on Wednesday trading against the Euro.