European Stocks and the Euro Rise Ahead of German Parliamentary Vote – Europe Market Wrap
European stocks and the euro rose ahead of a German parliamentary vote that is expected to sign off on a spending program worth hundreds of billions of euros.
The Stoxx 600 index climbed 0.6%, with Germany’s DAX benchmark touching a new record high, before the landmark vote that should usher in more expansive fiscal policy and boost economic growth across Europe. German borrowing costs edged higher, while the euro firmed to a new five-month high versus the dollar.
The prospect of German fiscal expansion has been a major catalyst for European equities’ performance this year, with a Bank of America Corp. monthly survey showing investors’ weighting to European stocks at a mid-2021 high. Their US allocations, meanwhile, have fallen by a record amount in recent weeks as President Donald Trump’s trade and labor policies threaten economic growth and company profits.
US S&P 500 futures slipped 0.4% though Nvidia Corp. rose in premarket trading ahead of chief executive Jensen Huang’s much-anticipated keynote speech at the company’s GAI conference.
