European Shares Mostly Higher On Stimulus Bets

European stocks were broadly higher on Thursday as a Democrat sweep in U.S. Senate race lifted stimulus hopes.

Following a Democratic sweep in Georgia, investors remain hopeful that President-elect Joe Biden will be better placed to push through stimulus packages to help America get through the Covid crisis.

Disappointing ADP jobs report released overnight also added to expectations that the Federal Reserve might decide to unleash more stimulus.

The pan European Stoxx 600 rose 0.3 percent to 407.41 after rallying 1.4 percent on Wednesday.

The German DAX gained half a percent and France’s CAC 40 index added 0.4 percent, while the U.K.’s FTSE 100 slipped 0.3 percent on profit taking after rallying as much as 3.5 percent to hit a ten-month high on Wednesday.

LafargeHolcim rose 0.7 percent after the world’s biggest cement maker announced $3.4 billion deal to buy Firestone Building Products from Bridgestone Americas.

J Sainsbury shares surged 4 percent after the grocer issued a third quarter trading statement for the 15 weeks to 2 January 2021. Third quarter like-for-like sales were up 8.6 percent (excl. fuel), with total retail sales up 6.8 percent (excl. fuel).

Mitchells & Butlers, a leading operator of managed restaurants and pubs, slumped 7.6 percent. The company said first quarter total sales were 67.1 percent below prior year during the 14 weeks ended 2 January 2021.

Entain, formerly known as GVC Holdings plc, rose 0.6 percent after it announced a recommended cash offer to buy Enlabs AB for 40 Swedish kronor per share.

MorphoSys AG advanced 2.3 percent. The biotech company said it has appointed Sung Lee as Chief Financial Officer, effective February 2, 2021.

Delivery Hero SE, a multinational online food-delivery service based in Berlin, fell 2 percent. The company said it has placed new shares from cash capital increase with gross proceeds of about 1.2 billion euros.

In economic releases, German manufacturing orders grew further in November, defying expectations for a decline, figures from the Federal Statistical Office/Destatis showed.

Factory orders rose 2.3 percent month-on-month in November, while economists had forecast a 1.2 percent fall. The growth for October was revised to 3.3 percent from 2.9 percent.

On a year-on-year basis, factory orders grew 6.3 percent in November after a 2.3 percent increase in the previous month.

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