BUSINESS European stocks waver; Paris hit by glitch

BUSINESS

European stocks waver; Paris hit by glitch

AFP

19:48, October 19, 2020

European stock markets wavered Monday amid a technical glitch in Paris, but investor sentiment remained buoyed by fresh optimism over a new US stimulus package, dealers said.

In early afternoon deals, the Paris benchmark CAC 40 index gained 0.6 percent, having shut for three hours owing to a technical problem according to operator Euronext.

Frankfurt flattened, while Madrid and Milan each won 0.3 percent.

London fell 0.1 percent as sterling rose on receding fears of a no-deal Brexit. The stronger pound weighs on the share prices of multinationals earning in dollars.

Stimulus plan

"The proposed US coronavirus relief package remains in focus," said CMC Markets analyst David Madden.

With a little over two weeks until the November 3 presidential election, time is running out for US lawmakers to reach an agreement on much-needed coronavirus support, but talks remain bogged down.

At the weekend House Speaker Nancy Pelosi set a Tuesday deadline for a pact to be hammered out, while Donald Trump urged his Republican Party to offer more than the $1.8 trillion they have put forward, adding that he would be willing to go higher than the Democrats' $2.2 trillion proposal.

Pelosi and Treasury Secretary Steven Mnuchin held talks over the weekend and planned more on Monday.

"Some people are less convinced that an agreement can be reached by tomorrow," Madden commented.

In London, traders remained on edge over the possibility that Britain and the European Union will not reach a post-Brexit trade agreement after Prime Minister Boris Johnson last week said he was ready to walk away without one.

With the two sides blaming each other for a lack of movement, senior British minister Michael Gove on Sunday said he was still hopeful there would be a deal.

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