Trump threatens to derail US stimulus

LONDON – European markets will mostly open lower on Wednesday as investors react to President Donald Trump’s rejection of a long-belated US coronavirus stimulus package.

The British FTSE 100 fell by 25 points to 6,432, the German DAX by 47 points to 13,375 and the French CAC by 16 points to 5,455, while the Italian FTSE MIB is expected to rise by 74 points to 21,745 according to the IG’s index data.

The subdued market action in Europe comes after Trump proposed that he may not sign the $ 900 billion Covid aid bill passed by Congress earlier this week. Trump called the move an inappropriate “disgrace” and urged lawmakers to make a number of changes, including larger direct payments to individuals and families.

In Asia, stocks were higher despite Trump’s remarks. The broadest MSCI index for stocks in the Asia-Pacific region outside of Japan, rose 0.6%.

On Wall Street, stock futures changed little in overnight trading and largely rebounded from previous declines after Trump raised concerns about the new Covid bailout.

Back in Europe, France reopened its border with England on Wednesday. Passengers arriving at the border must have a negative coronavirus test result. It comes after France imposed a ban on people and cargo from the UK over concerns over a rapidly spreading Covid mutation, first detected in the south east of England.

Concerns about the economic impact of the UK’s tough new lockdown measures to curb the spread of the new strain of coronavirus and ongoing uncertainty over Brexit continue to weigh on investor sentiment.

On Tuesday, EU chief negotiator for Brexit, Michel Barnier, said the bloc was making a “final push” to reach a Brexit trade deal with the UK, but disagreements persist over fishing rights. There were positive reports of the talks, with ITV’s Robert Peston claiming an agreement could be reached on Wednesday.

Comments are closed.