European stocks are seen opening higher on Monday as investors keep a close eye on currency fluctuations and watch the latest developments regarding a new U.S. fiscal stimulus bill.
Asian markets are trading mostly higher, with Chinese and Hong Kong shares leading regional gains after the People’s Bank of China scrapped a requirement for banks to hold a reserve of yuan forward contracts.
The offshore Chinese yuan dropped and the dollar index edged up against its rivals after the rule change that made it cheaper to short the Chinese currency. Biden’s lead in national polls also helped drive surging yuan gains.
Meanwhile, U.S. President Trump on Sunday declared himself immune from Covid-19 after the White House doctor announced late Saturday the president was “no longer considered a transmission risk.”
Gold eased on dollar strength while oil prices dropped for a second straight session after a ten-day oil workers’ strike in Norway was resolved late last week.
U.S. stocks rose on Friday to end the session at their best closing levels in over a month after President Trump said he would like to see a “bigger stimulus package than either the Democrats or Republicans are offering.”
Trump’s comments came amid reports that the White House was planning to offer a $1.8 trillion package, which is up from the administration’s previous $1.6 trillion proposal but still below the $2.2 trillion bill passed by House Democrats.
The Dow Jones Industrial Average gained 0.6 percent, the tech-heavy Nasdaq Composite climbed 1.4 percent and the S&P 500 added 0.9 percent.
European markets gained ground on Friday as minutes of the European Central Bank signaled further stimulus in the not too distance future and the U.K. government expanded its job support scheme for another six months.
The pan European Stoxx 600 added 0.6 percent. The German DAX inched up 0.1 percent, while France’s CAC 40 index and the U.K.’s FTSE 100 both gained 0.7 percent.
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