European, Asian shares gain as investors look towards economic recovery

Gulf Today Report

European shares gained on Thursday but it was little due to the extended restriction in Germany and discouraging economic forecasts in other parts of Europe. 

The pan-European STOXX 600 rose 0.1%, with tech and healthcare sectors leading gains. The benchmark index ended a four-day winning streak in the previous session as investors cashed in on gains after a vaccine-fuelled rally.

UK Finance Minister Rishi Sunak said the economy is moving towards a shrink by 11.3% that led to UK's domestically exposed stocks stabilizing after a sell-off on Wednesday. 

Trading volumes are expected to be thin in light of the Thanksgiving holiday in the United States. 

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Asian Shares

Asian shares rose on Thursday as investors remain optimistic of Biden’s administration injecting stimulus into the economy.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.39% while Japan's Nikkei gained 0.91%.

European stock futures eked out gains of 0.30% before the start of cash equity trading.

MSCI's broadest gauge of the world's shares covering 49 markets added 0.15%, bringing gains so far this month to 12.8%, on course for a record monthly increase.

The rallying of stock started earlier in the month, following Joe Biden election victory. 

Arihiro Nagata, general manager of global investment at Sumitomo Mitsui Bank said, "reduced policy uncertainties are helping markets. It will be easier for companies to make capital expenditures." 

He added that “it's true that stock prices are quite expensive but markets are finding fewer and fewer reasons to sell them. In this environment, you can't make profits by selling. The only question to ask is what assets you should buy."