European stocks rise as investors hope for Biden relief package

US Treasury Secretary nominee Janet Yellen called for big fiscal spending to boost economy

Janet Yellen, President-elect Joe Bidens nominee for Secretary of the Treasury, participates remotely in a Senate Finance Committee hearing in Washington DC. Photograph: Anna Moneymaker/Pool/AFP via Getty Images

Janet Yellen, President-elect Joe Bidens nominee for Secretary of the Treasury, participates remotely in a Senate Finance Committee hearing in Washington DC. Photograph: Anna Moneymaker/Pool/AFP via Getty Images

 

European stocks rose on Wednesday after Swiss luxury group Richemont and chip equipment maker ASML gave encouraging earnings updates, while investors hoped for a big US fiscal relief package as Joe Biden takes over as the next president.

The pan-European Stoxx 600 index gained 0.2 per cent in early trading.

European bourses mirrored an upbeat mood in global markets after US Treasury Secretary nominee Janet Yellen called for big fiscal spending by underlining the need to help the pandemic-stricken economy.

Luxury stocks gave the biggest boost after Richemont posted a 5 per cent increase in quarterly sales, led by strong growth at its jewellery brands in Asia Pacific and the Middle East.

The group’s stock rose 4.8 per cent, rival Swatch Group gained 2.9 per cent, while Britain’s Burberry jumped 4.4 per cent after earnings update.

Germany’s Hugo Boss added 4.6 per cent after Mike Ashley-led Frasers said it boosted its stake in the company.

ASML Holding NV rose 2.1 per cent after it posted better-than-expected sales for the fourth quarter and said it had seen a strong order intake for 2021.

Italy’s FTSE MIB outperformed after Prime Minister Giuseppe Conte won a confidence vote in the upper house Senate on Tuesday, allowing him to remain in office after a junior partner quit his coalition last week. – Reuters