European, Asian shares advance as countries ease lockdowns and Dow Jones gains
25 Nov 2020
Picture used for illustrative purpose. File
Gulf Today Report
European shares gained on Wednesday due to easing of lockdowns in different parts of Europe and hope of a vaccine soon, this is its nine-month high.
The pan-European STOXX 600 index gained 0.3%, with banking stocks rising 1.6% a following a report that suggested the European Central Bank could signal a lift on a ban on bank dividends next year.
The energy sector keeps gaining as oil prices extend on optimism of rising in fuel demand.
Some nations of the United Kingdom and Germany announced measures that would enable gathering for Christmas. France has started relaxing its lockdown after a fall in cases of infection and hospitalizations.
Asian shares jumped on Wednesday following Dow Jones closing above 30,000 points for the first time.
Japan's benchmark Nikkei 225 edged up 0.5% to finish at 26,296.86. Australia's S&P/ASX 200 gained 0.6% to 6,683.30. South Korea's Kospi lost early gains to decline 0.6% to 2,601.54. Hong Kong's
Hang Seng rose 0.2% to 26,636.98, while the Shanghai Composite dipped 1.2% to 3,362.33.
According to Jingyi Pan, senior market strategist at IG in Singapore, the transition of power has finally begun and Joe Biden, US President-elect decision of Janet Yellen as treasury secretary has boosted the confidence of traders.
The Dow rose more than 450 points, or 1.5%, to cross the milestone. The S&P 500 index, which has a far greater impact on 401(k) accounts than the Dow, rose 1.6%, climbing to its own all-time high.
Bank and Industrial sectors are winning as investors are tilting towards them due to their gain in the stock markets.