European stocks rise after Trump unilaterally extends jobless benefits

Date | 10-08-2020 - 03:47 PM Article Type | Stock Markets Region | World

European stocks rose on Monday, buoyed by a move from U.S. President Donald Trump to unilaterally extend jobless benefits in the world’s top economy.

The moves came as President Donald Trump signed four executive orders over the weekend, including one that extends federal unemployment benefits at a rate of $400 per week from the expired level of $600 per week and another that temporarily cuts payroll taxes. It’s not clear whether the executive orders will withstand legal challenges and the benefits funding, achieved through tapping an emergency program, is set to last five weeks.

“Risk assets are signaling a considerable drop in Congress’ ‘cliff-edge’ premium; nevertheless, if U.S. lawmakers underdeliver, it could pleat economic growth expectations into year-end,” said Stephen Innes, global chief markets strategist at AxiCorp.

The latest report on U.S. job openings comes at 10 a.m. Eastern.

Carnival CCL, 2.66% shares rose 5% as its Aida division extended its pause of its cruise season until Sept. 30, except for early September trips from Kiel and Hamburg.

Alstom ALO, -1.96% shares fell 1.5% as the company said it still plans on buying Bombardier’s rail unit despite what it calls “unexpected and negative developments.” Alstom suggested it might try to renegotiate the roughly €6 billion deal, saying it “will take into account the consequences of these operating and financial developments in forthcoming discussions with Bombardier Inc, and will update the market as required.” 

Author: PPS
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