LONDON — European stocks traded higher on Thursday following a projected win for Democrats in the U.S. Senate following dramatic scenes when pro-Trump rioters stormed the U.S. Capitol building.
The pan-European Stoxx 600 gained 0.6% in early trade, basic resources adding 2.5% to lead gains while tech stocks dropped 0.3%.
Democrat Jon Ossoff beat Republican David Perdue in one of the runoffs, NBC News projected, sealing his party’s control of Congress and the White House. Democrat Raphael Warnock is projected to defeat GOP Sen. Kelly Loeffler in the state’s other runoff.
The victories set up a 50-50 split in the Senate, giving Democrats a slim majority with Vice President-elect Kamala Harris’ tiebreaking vote.
The projection in the race came as rioters backing President Donald Trump stormed the Capitol building after he urged supporters at a rally to march on Congress. The attack on the legislature delayed the formal Electoral College count — which dozens of Republicans challenged at Trump’s insistence — as lawmakers evacuated the building.
During Wednesday’s trading session, markets were largely unaffected by the chaos in Washington; lawmakers had just started the procedural process of counting the Electoral College votes and formally declaring President-elect Joe Biden the winner, when protesters had stormed the chamber.
By Wednesday evening, the Capitol building was secured and Congress reconvened to continue the process to confirm Biden’s win. Senate Majority Leader Mitch McConnell said the Senate will certify the winner of the 2020 election Wednesday night. U.S. stock futures rose in overnight trading.
Meanwhile, stocks in Asia-Pacific were mixed in Thursday trade after the Dow Jones Industrial Average surged to an all-time high overnight despite unrest in Washington.
However, shares of Chinese telecommunications firms listed in Hong Kong fell after the New York Stock Exchange made yet another U-turn on its decision to delist the firms. Trading of the three securities will be suspended at 4 p.m. ET Monday, the exchange said.
In Europe, the coronavirus pandemic remains a key concern. The U.K. reported more than 60,000 new daily cases on Wednesday and a further 1,000 deaths of people with the virus.
On the data front, euro zone flash inflation figures are out at 10 a.m. London time.
In terms of individual share price movement, Lundin Energy gained more than 8% in early trade to lead the Stoxx 600, after receiving permission to drill a new exploration well in the Norwegian North Sea.
Meanwhile, stocks in Asia-Pacific were mixed in Thursday trade after the Dow Jones Industrial Average surged to an all-time high overnight despite unrest in Washington.
However, shares of Chinese telecommunications firms listed in Hong Kong fell after the New York Stock Exchange made yet another U-turn on its decision to delist the firms. Trading of the three securities will be suspended at 4 p.m. ET Monday, the exchange said.
In Europe, the coronavirus pandemic remains a key concern. The U.K. reported more than 60,000 new daily cases on Wednesday and a further 1,000 deaths of people with the virus.
On the data front, euro zone flash inflation figures are out at 10 a.m. London time.
In terms of individual share price movement, Lundin Energy gained more than 8% in early trade to lead the Stoxx 600, after receiving permission to drill a new exploration well in the Norwegian North Sea.
