European stocks rise as possible 'blue sweep' in Georgia lifts U.S. stimulus hopes

  • Reuters
  • Stock Market News
European stocks rise as possible 'blue sweep' in Georgia lifts U.S. stimulus hopes
Credit: © Reuters.

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Jan 6 (Reuters) - European stocks rose on Wednesday, with economically sensitive sectors such as energy and banks leading the gains, as investors braced for a Democratic win in crucial U.S. Senate run-off election in Georgia that could drive bigger fiscal stimulus.

The pan-European STOXX 600 index .STOXX rose 0.4%, while UK's FTSE 100 .FTSE edged 0.8% higher while Germany's DAX .GDAXI gained 0.3%.

Oil majors BP BP.L , Royal Dutch Shell RDSa.L and Total TOTF.PA gained as crude prices rose to their highest since February 2020 on Saudi Arabia's pledge to cut output more than expected in a meeting with allied producers. O/R

Banks .SX7P advanced the most, up 2.5%, while other cyclical sectors such as automakers .SXAP and insurers .SXIP added more than 1%.

While the final votes are yet to be counted in the run-off elections, markets appeared to price in a 'blue wave' that could usher in larger fiscal stimulus and pave the way for President-elect Joe Biden to push through greater corporate regulation and higher taxes. Europe, a pullback in healthcare .SX3P , food & beverage .SX3P and tech .SX8P shares capped gains in major bourses.

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