French stocks advanced on Thursday as solid ADP private payrolls data released overnight triggered hopes of a labor market recovery in the world’s largest economy and the House’s approval of a budget resolution cleared the path for the Covid-19 relief plan.
The U.S. House of Representatives passed the budget resolution in a 218-212 vote on Wednesday, with the Senate vote scheduled later this week.
After the passage in both chambers, Democrats will start crafting a budget reconciliation bill, which would allow them to push stimulus legislation.
Investors remain hopeful after Democrats pushed ahead with a maneuver to pass U.S. President Joe Biden’s $1.9 trillion Covid-19 relief package without Republican support.
Closer home, French business managers forecast a strong rebound in investment expenditure this year, according to a survey, released by the statistical office Insee.
Managers forecast investment expenditure to rise 10 percent this year, reversing an estimated decline of 13 percent in 2020. Managers upgraded their forecast for 2021 by 6 points and that for 2020 by 1 point.
The benchmark CAC 40 rose 26 points, or half a percent, to 5,589 after finishing marginally lower the previous day.
Market Analysis
CAC 40 Gains On US Stimulus Optimism
2021-02-04 09:23:23
