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European Shares Seen Up On Economic Optimism

stockmarkets dec17 16feb21 lt

European stocks may open higher on Tuesday amid optimism that a successful vaccine rollout and an injection of stimulus spending could help spur a faster economic recovery.

The World Health Organization (WHO) late on Monday night gave emergency use approval to two versions of the AstraZeneca/Oxford Covid-19 vaccines, giving the green light for these shots to be rolled out globally through COVAX.

An analysis by the Institute on Taxation and Economic Policy (ITEP) showed that U.S. President Joe Biden's $1.9 trillion American Rescue Plan would benefit millions of Americans and would have an outsized impact for the people who make up the poorest fifth of the population.

Asian markets are gaining ground and U.S. Treasury yields rose to their highest levels since March, while the U.S. dollar hit a three-week low ahead of the minutes from the U.S. Federal Reserve's January meeting, due to be published on Wednesday.

Oil prices hit 13-month highs as a deep freeze due to a severe snowstorm in the United States boosted power demand and also threatened oil production in Texas.

Economic sentiment data from Germany and quarterly national accounts from euro area are due later in the session, headlining a light day for the European economic news.

Markets in the U.S. were closed overnight for Presidents Day holiday. European stocks ended near one-year highs on Monday amid optimism about rapid economic recovery.

The pan European Stoxx 600 climbed 1.3 percent. The German DAX rose 0.4 percent, France's CAC 40 index gained 1.5 percent and the U.K.'s FTSE 100 added 2.5 percent.

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