FX.co ★ Stock markets in Asia and Europe soared amid strong economic data

Asia-Pacific Stock Exchanges climbed on Wednesday morning following the rise in the US Stock Exchanges. Investor sentiment improved after some progress in the negotiation process on the adoption of a new financial incentive program in the US.

As before, the main attention of market participants is occupied by news about the new package of financial assistance to the US economy. The next round of talks is scheduled to take place on Wednesday afternoon, which will bring together the four congressional leaders – the Speaker of the House of Representatives, the majority and minority leaders in the Senate, and the minority leader in the House of Representatives. It is expected that the participants will hold productive negotiations that will bring the bill closer to its final approval and signing.

Moreover, traders are very positive about the possible accelerated recovery of the US economy against the background of the near start of vaccination against coronavirus infection. Market participants expect an immediate positive effect from this, but experts advise not to draw premature and such early conclusions.

Japan's Nikkei 225 index rose 0.23%. The rather weak statistics on the growth of the state's economy could not have a negative impact on it.

According to the latest data, Japan's exports in the last month of autumn fell immediately by 4.2% compared to the same indicator last year. In November, exports in the country amounted to £6.11 trillion, which corresponds to $59.05 billion. Compared to October of this year, the rate of contraction increased by 0.2%. At the same time, analysts did not expect such a turn of events assuming that the indicator would increase by about 0.5%.

Meanwhile, the level of imports in Japan also underwent a serious decline by 11.1%, which forced it to fall to £5.75 trillion, or $55.57 billion. It should be noted that the drop in the indicator has been going on for nineteen months in a row. In the second month of autumn, the decline was even more substantial at 13.3%.

Japan's foreign trade balance remains positive at £366.8 billion in the last month of autumn, while last month it was at £871.7 billion. A year earlier, there was a surplus of £88.4 billion.

China's Shanghai Composite Index climbed 0.14%. The Hong Kong Hang Seng Index supported the positive trend and gained 0.84%.

South Korea's KOSPI rose 0.54%.

Australia's S&P/ASX 200 Index rose 0.7%.

Likewise, European Stock Exchanges also traded in a positive trend on Wednesday. The major stock indexes went up, which is due to the release of quite strong statistics on the economic development of the region.

According to the latest data, the overall PMI in the eurozone for the first month of winter has already increased and reached 49.8 points, while earlier its value was at the level of 45.3 points. Preliminary forecasts expected growth of no more than 45.8 points.

Activity in the eurozone services sector also increased. The indicator was at the level of 47.3 points compared to the previous value of 41.7 points.

The PMI level in the manufacturing sector also jumped to 55.5 points compared to the previous month's value of 53.8 points.

All this had a positive impact on the mood of investors, and the major stock indexes immediately rushed to increase their positions.

The general index of large enterprises in the European region STOXX Europe 600 increased by 0.85%, which allowed it to move to the level of 396.17 points.

The UK FTSE 100 Index climbed 1.13%. The German DAX Index rose 1.64%, making it the leader of Wednesday's growth. France's CAC 40 Index jumped 0.83%. Italy's FTSE MIB Index rose 0.75%. Spain's IBEX 35 Index gained 0.44%.