LONDON – European equities were up on Thursday morning, with markets reacting to the positive momentum in the United States following the final approval of President Joe Biden’s $ 1.9 trillion Covid relief bill.
The pan-European Stoxx 600 rose 0.2% in early trading, with technology stocks rising 1.5% for leadership gains, while banks fell 1%.
International markets are expected to react positively after the House of Representatives approved the $ 1.9 trillion stimulus package, sending it to President Biden, who is due to sign the bill on Friday.
Read more: House approves $ 1.9 trillion Covid relief bill and sends Biden to sign
Asia-Pacific markets traded higher on Thursday after a relatively strong end on Wall Street overnight after the aid package was approved. U.S. stock futures pointed to another positive opening on Thursday after the Dow Jones jumped 464 points to a record high closing on Wednesday.
European markets will be focused on the next move by the European Central Bank, which is due to meet on Thursday. ECB officials in recent weeks have described the rise in bond yields as an “unwarranted squeeze” and a situation that needs to be monitored closely.
Read more: Rising incomes are creating problems for the ECB. And is divided on what to do
The ECB will make its latest interest rate announcement at 12:45 pm, London time, and is expected to publish macroeconomic projections for the euro area at 2:30 pm, London time.
European gains came from Generali, Hugo Boss, Rolls-Royce, WPP, Morrisons and John Lewis Partnership.
In terms of individual share price action, France’s EDF rose more than 7% to lead the Stoxx 600 in early trading, while British construction company Persimmon fell 4.6% to the bottom of the index.
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