European Stock Futures Rally after Volatile Tuesday Trading
European stock futures are trading in positive territory on Wednesday after moving between gains and losses on Tuesday. The pan-European Stoxx 600 index plunged 0.2% on Tuesday after gaining 1.6% on Monday. Travel and leisure stocks grew sharply since the beginning of this week amid coronavirus vaccine hopes.
European stocks are in green on Wednesday as traders are applauding positive developments between the two largest economies.
USTR statement released Monday evening indicated that U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer had a call with Chinese vice Premier Liu He to discuss the progress on the implementation of Phase One deal.
“Both sides see progress and are committed to taking the steps necessary to ensure the success of the agreement,” according to the USTR.
Oil and energy stocks were among the laggards on Tuesday. Aveva stock was among the biggest gainers as the company has announced to buy OSIsoft for $5 billion.
On the negative side, Germany’s GDP for second-quarter shrank by 9.7% from the previous three month period. The data shows that consumer spending dropped by 10.9% while capital investments plunged by 19.6% and exports slid by 20.3%.
On the positive side, German business sentiment grew for the fourth straight month in August and big companies’ outlook of their current situation improved notably.
Wall Street, on the other hand, jumped to another record level on Tuesday. The S&P 500 index and Nasdaq hit a new all-time high, thanks to sharp growth from big tech companies. The significant decline in new coronavirus infections has also supported investor’s sentiments.
What Does it Mean for Investors?
- The U.S. and European stock futures are in green on Wednesday.
- Gold price slid on dollar strength.
- Crude oil extends losses.
- Euro looks steady at around 1.18 level against the US dollar.