* European shares open higher
* France reopens border with UK
* Tests seen confirming vaccines effectiveness
* Trump threatens to not sign COVID-19 bill
* US futures edge up
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REBOUND CONTINUES (0833 GMT)
European shares are off to a positive start, extending their
rebound from Monday's sell-off as investors shrugged off Trump's
threat to not sign a relief bill, while taking comfort from news
that France has reopened its border with the UK and expectations
vaccines will be effective against the virus variant.
The STOXX 600, up 0.5% on the day, was just 1.5 percentage
points below the February high it hit last week.
Hopes of an eleventh hour Brexit trade deal also came into
play, lifting the pound and weighing on the FTSE, which was the
only major European index trading in the red in early deals.
Biggest gainer on the STOXX was BA owner IAG while stay at
home darling Hellofresh was down 2.5%, reflecting optimism about
the effectiveness of the vaccines.
Here's your snapshot.
(Danilo Masoni)
*****
MARKETS RIDE OVER TRUMP BUMP (0811 GMT)
U.S. President Donald Trump has thrown a small spanner in
the works for markets riding, once again, near record highs.
His threat late on Tuesday to not sign an $892 billion
coronavirus relief bill because he wants bigger stimulus checks
could disrupt the passing of a hard-fought package markets had
already priced in.
That, together with the clock ticking down on an elusive
Brexit trade deal between the European Union and Britain and a
new jump in COVID-19 cases globally has ruffled investors,
although not by much.
The signs on Wednesday in holiday-thinned markets were that
most traders are taking the news in their stride, with European
stock futures mixed.
World stocks rose 0.2%, powered by gains in Asia, and sit
just 1% off record highs.
Wall Street initially dropped sharply after news of Trump's
unease with the stimulus scheme, but futures now point to a
small rise at the open -- a sign again of stocks resilience as
investor optimism looks beyond short-term bumps in the road.
The dollar, which is headed for a 6% drop in 2020, slipped
as the euro rose back towards $1.22.
The dollar was also pulled lower by a rise in the pound on
the possibility of Britain and the European Union striking a
trade deal on Wednesday.
In corporate news, there was more electric vehicle mania
overnight. LG Electronics shares surged 30% after the South
Korean group and automotive supplier Magna announced the launch
of a $1 billion joint venture that will make key components for
electric cars.
Apple had gained on Tuesday after Reuters reported that it
plans to launch its own electric car by 2024 -- that had sent
the Nasdaq to another record high.
Key developments that should provide more direction to
markets on Wednesday:
-US monthly private consumption data for November
-Preliminary US core capex data for November
-Bank of Thailand monetary policy committee meeting
(Tommy Wilkes)
*****
MORNING CALL: EUROPE SEEN WEAKER (0639 GMT)
European shares are expected to open a touch weaker today
after a volatile start of the week that saw a big sell-off on
Monday followed by a recovery on Tuesday as investors gauged the
impact of a fast spreading virus variant discovered in the UK.
The new strain triggered tough restrictive measures in
Europe, which in turn clouded the outlook for the economic
recovery, although current vaccines should be protective even
against the new strain.
Drugmakers expect vaccines will be effective and their tests
should provide confirmation in a few weeks.
Meantime, in another positive sign, France will reopen its
borders to passengers from England on Wednesday, ending a
blockade intended to stop the spread of a new variant.
Souring again the mood again however was Trump who late on
Tuesday threatened to not sign the $892 billion coronavirus
relief bill, saying it should be amended to increase the amount
in the stimulus check.
At the time of writing, futures for the Euro STOXX 50, DAX
and FTSE 100 were down between 0.2% and 0.3%, while U.S. futures
also eased just slightly after a mixed close on Tuesday that saw
the Nasdaq reach yet another record high.
(Danilo Masoni)
*****
International Airlines (IAG)
