European Shares Seen Up On US Aid Deal Hopes

European stocks are likely to open higher on Wednesday as investors clung to hopes for a deal on U.S. stimulus talks.

U.S. House Speaker Nancy Pelosi said on Bloomberg TV that legislators are starting to commit the measure to paper, but cautioned “Legislation is tough.”

Senate Majority Leader Mitch McConnell signaled a willingness to bring a bill passed by the House, and supported by President Trump, to the floor at some point.

Asian stocks are moving higher after Trump signaled that he was willing to accept a large aid bill despite Republic opposition.

With only two weeks left until Election Day, Trump will go head-to-head with Biden for their second presidential debate in Nashville, Tennessee on Thursday.

Gold prices rose on a softer dollar as parts of Europe imposed renewed lockdown measures to slow the contagion. Oil dropped as a surprise climb in U.S. crude stockpiles added to concerns about a global supply glut.

Consumer and producer prices as well as public sector finance data from the U.K. are due later in the session, headlining a light day for the European economic news.

U.S. stocks rose overnight as Procter & Gamble (PG) and Travelers Companies Inc. posted encouraging earnings and biotech firm Moderna said it is expecting interim results of its coronavirus vaccine trials in November.

Investors also pinned hopes on additional fiscal aid as House Speaker Nancy Pelosi downplayed the importance of an end-of-Tuesday deadline she had set to strike an agreement.

The Dow rose 0.4 percent, the tech-heavy Nasdaq Composite gained 0.3 percent and the S&P 500 added half a percent.

European stocks fell on Tuesday amid renewed concerns about the coronavirus spread and state of Brexit trade talks.

The pan European Stoxx 600 slid 0.4 percent. The German DAX dropped 0.9 percent and France’s CAC 40 index eased 0.3 percent while the U.K.’s FTSE 100 finished marginally higher amid weakness in the pound.

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