European markets opened higher, confirming yesterday’s gains while benchmarks head for their best weekly performance since November. This “risk-on” market sentiment spread to Europe from the US after investors welcomed the result of the run-off election in the state of Georgia that gave the Democratic party effective control of the US senate, relieving political and economic uncertainties. This is perceived as very good news by traders as the Biden administration will now have greater powers to boost economic recovery in the short-term, introduce more tax and regulation in the mid-term and build strong international trade partnerships in the long-term.
Travel & tech shares are among the top performers in Europe today while the Stoxx-50 index trades well above the 3,600-pts level with 3,770 pts now in sight. While this bullish sentiment is likely to continue in the short- to mid-term, investors will focus back on the US later today as the highly anticipated unemployment change and Non-Farm Payroll data for December are looming.