European stocks close higher, optimistic about investment plan in the US | Stock Exchanges and Indexes

European stocks close higher, optimistic about investment plan in the US | Stock Exchanges and Indexes
European stocks close higher, optimistic about investment plan in the US | Stock Exchanges and Indexes

After adjustments, the pan-European index Stoxx Europe 600 closed up 0.61% to 432.22 points. The FTSE 100, the benchmark index for the London Stock Exchange, rose 0.35%, to 6,737.30 points, the DAX, from Frankfurt, advanced 0.66%, to 15,107.17 points, and the CAC 40, from Paris, gained 0.59% to 6,102.96 points. In Milan, the FTSE MIB closed up 0.25%, at 24,710.00 points, and the Ibex 35, in Madrid, fell 0.03%, at 8,577.60, against its peers on the continent.

Biden yesterday presented a plan that includes $ 2.25 trillion in infrastructure spending over eight years, to be paid by corporate taxes worth about $ 2 trillion in 15 years. The proposal faces difficulties to pass the Congress, but the expectation is that the legislators of the Democratic Party, of Biden, will be able to approve the bill, since they have majority in both Chambers of the American Congress.

The biggest difficulty is in the Senate, where the Democratic majority is very narrow and depends on the tiebreaker vote of Vice President Kamala Harris – in the USA, the person who holds the position of vice president accumulates the presidency of the Senate.

“While this is good news for the economy and appears to be a favorable development for stocks, it would be interesting to wait and see if it will reactivate fears of an overheating economy. If so, it could raise US Treasury yields. for more and maybe weigh in the stocks again, however, we do not believe that we will see a strong sale of Treasuries, if any, “Charalambos Pissouros, senior market analyst at JFD Group, told Dow Jones Newswires.

The gains were broad in Europe, with the shares of the technology sector leading the gains in the Stoxx 600, with a 2.02% increase in the session, following the skyrocketing of the shares of the sector in the USA. Shares in sectors such as the industrial sector, which closed at a high of 1.21% in the pan-European index, also benefited from the optimism surrounding the American economy, with the expectation that spending will translate into greater demand in the largest economy in the world. world.

Industrial stocks were also supported by positive data from European industry, although it is the services sector that is suffering the most from slow vaccination and prolonged lockdowns on the continent. According to IHS Markit, the euro zone’s industrial PMI rose to 62.5 points in March, from 57.9 in February, slightly exceeding the preliminary estimate of 62.4 points, according to IHS Markit data.

Banks’ shares – the biggest sector of the Stoxx 600 – closed with much more modest gains, however, rising 0.19%. The sector accumulated gains of more than 2% in the week.

Content published by Valor PRO, Valor’s real-time service

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