European markets opened significantly higher, following a fresh record high on US indices, as investors welcomed the prospect of a solid US stimulus package. The “risk-on” trading stance is back on most benchmarks after the $916bn Stimulus package proposal from US Secretary of Treasury Steven Mnuchin offset mounting fears due to rising Covid-19 numbers. This had an immediate effect on stock prices everywhere while European shares also benefited from another bullish leverage: Brexit negotiations.
Investors were pleased to see the UK has agreed to make some concessions regarding its Internal Market Bill, highlighting the will of the UK Government to strike a trade deal with its most significant trade partner, the EU, which remains reassuring. However, we are not out of the woods yet as some parts of the US Covid-19 relief package are still under negotiation while investors are waiting for