Why Stock Exchanges have strong upward movement!
Great Britain and the EU had already agreed on a Brexit trading pact on December 24th, after the stock market closed. A hard economic downturn, at the turn of 2020, appears to have been averted for now, due to this agreement. The agreement is intended to regulate economic relations between the island and the continent, from January 2021.
This is one of the reasons why Stock Exchanges have strong upward movement!
The Euro-Stoxx-50 gained 0.91 percent to 3,575.41 points. The German DAX gained 1.49 percent to 13,790.29 units. The index had jumped up to 13,818.65 points in early trading, trumping the old record from February.
In the heavily weighted banking sector, Raiffeisen (plus 0.12 percent), as well as Erste Group (plus 0.36 percent), closed slightly in the black. OMV climbed a moderate 0.12 percent. And TX + 0.9 per cent.
Brexit pact and US aid package are driving the Stock Exchanges strongly upwards. Europe’s exchanges closed more tightly, with focus on Brexit and US aid package. DAX on record course, gains also in Vienna.
The Vienna Exchange closed with profits on Monday. The domestic leading index ATX gained 0.90 percent to 2,761.71 points. The ATX Prime rose 1.02 percent to 1,403.11 points.
Another reason why Stock Exchanges have strong upward movement, is because on the weekend, US President Trump gave up his resistance to a Corona stimulus package passed by Congress, with a bipartisan majority. In doing so, he also released part of the federal government’s budget of around 1.4 trillion dollars – otherwise there would have been a so-called “shutdown” on Tuesday, i.e. and at least partial standstill in the government business and authorities.
Europe’s Stock Exchanges closed much more tightly at the beginning of the week. The markets were driven by the joy of the Brexit trade pact and the US Corona aid package.