Stimulus hopes, vaccine progress helps stocks rise

Stimulus hopes, vaccine progress helps stocks rise

LONDON “” European and US stock markets mostly rose on Tuesday on optimism over US stimulus and vaccines, but London stumbled ahead of the capital's tightened coronavirus restrictions as dealers also tracked Brexit trade talks.

Asian equities closed lower as surging COVID-19 infections forced global governments to impose tighter containment measures, trumping optimism over vaccines.

"The market continues to be dominated by the twin narratives of US stimulus and Brexit," said analyst Chris Beauchamp at trading group IG.

"Despite a miserable session in Asia, where traders fretted over Europe's return to broad lockdown policies, European markets have managed to clock up some decent gains."

The British pound rose as Brussels and London continued to pursue extended talks for a long-awaited Brexit trade deal.

"The picture still remains unclear with respect to the future trading relationship between the UK and the EU but seeing as negotiations are still ongoing, that is good enough in traders' eyes “” the door is open for a deal," said CMC Markets anlayst David Madden.

London stocks fell 0.4 per cent in afternoon trading with the British capital set to face tighter coronavirus restrictions from midnight.

Added to the gloom, official data showed Britain's unemployment rate rising as the pandemic destroyed a record