Fundamental Comment

European stocks hover near 11-week high on gradual reopening

European stocks hover near 11-week high on gradual reopening

European stocks were trading near an 11-week high on Tuesday, led British stocks, after companies around the world gradually reopened following a month-long close.

The pan-European Euro Stoxx 50 index rose 0.87%, as of 10:00 GMT, to 2,997.32 points.

Returning from a bank holiday, the British FTSE 100 index climbed 1.51%, as Prime Minister Boris Johnson said on Monday that Britain would reopen thousands of department stores and shopping malls next month.

Wall Street futures edged up 2% amid hopes for more political support and on some improvement in economic data, which boosted hopes for a faster economic recovery from the Corona virus pandemic.

The German DAX index witnessed an increase of 0.72% to 11,473.36 points and the French CAC 40 index surged 1.43% to 4,604.94 points after announcing the intention to support the deteriorating auto sector.

On the other hand, we find that demand has begun to stabilize to some extent on risky investments such as stocks, with the easing of closures around the world, which is also shown on gold prices that experienced a decline for the second day in a row, reflecting the decline in demand for safe haven, but prices remained above $1700 an ounce.

British Central Bank chief economist Andy Haldane said on Tuesday that the bank is not far from any decision that would cut interest rates below zero.

Haldane also said that some of the latest economic data came in better than the economic scenario published by the Bank of England earlier this month.

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