After US Capitol siege, stock market rally fades – businesses live

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In London, the FTSE 100 index has fallen into negative territory and is 0.14 percent lower at 6,832, while the German Dax is still 0.33 percent ahead and a 0.42 percent rise was retained by the French CAC.

Italy’s MiB FTSE is smooth.

Congress confirmed Joe Biden as the next President of the United States in Washington – a procedure that was interrupted last night when the Capitol was stormed by hundreds of Trump supporters.

According to the latest survey from IHS Markit, construction activity in the eurozone decreased for the tenth consecutive month in December.

From 46.6 in November, the key index fell to 45.5, below the 50 mark that distinguishes expansion from contraction.

In commercial construction, particularly in France, the sharpest decline has been seen.

The mood among building companies in the euro area has remained negative.

French and German firms also predict a decrease in activity over the next 12 months, although Italian firms have been more positive.

Usamah Bhatti, IHS Markit economist, stated:

As the demand for new building projects remains sluggish, companies across the EU have decreased their headcount in the latest survey period at a slightly faster rate.

Concerns about the longer-term effect of the pandemic on the construction sector as a whole, combined with the absence of a tender for new public and private sector ventures, meant that, for the fifth consecutive month, the negative outlook for eurozone construction firms persisted.

By nation, further declines in construction activity were recorded by France and Germany, with Germany recording the sharpest drop since May.

For the first time since September, Italian firms, on the other hand, recorded slight growth.

And Mark Haefele, UBS Global Wealth Management’s chief investment officer, adds:

Double win by the Democrats in the U.S. Global assets were affected by the Senate election in the state of Georgia, with expectations for stimulus steps outweighing political violence in the U.S. capital. The policy implementation implications of the Senate outcome are important, with the potential for both small tax rises and increased green recovery expenditure increasing.

European stock markets – at least for now – are hanging on to their gains.

The FTSE 100 of Britain is up 0.62 percent .
German Dax up 0.21
CAC of France up 0,18
Italy’s FTSE MiB is up 0.2% .
For the first time in its history, the Dax is approaching 14,000 marks.

Connor Campbell, financial analyst for Spreadex, a trading site, said:

The Capitol Hill assault could not shake the resolve of the markets to start 2021 on the best foot forward. After the bell, however, Europe struggled to build on its recent development.

While the election victory of Biden has not yet been officially verified due to the attempted fascist rebellion on Wednesday, investors have reported two victories in Georgia in the Democratic runoff election, with Raphael Warnock and Jon Ossoff becoming the first black and first Jewish senators in state history.

Now that the new administration has control of Congress’ upper and lower houses, it is up to the administration of Biden to prove that stuff can be done – and from the point of view of the markets, that means a fat stimulus package to compensate for the compromised bill decided before Christmas.

Biden and Co. are aiming to offer higher markets on Wednesday, only helping Europe to retain its green shine at the beginning of trading on Thursday.

Sainsbury’s was the biggest gainer on the London Stock Exchange, with its share price rising almost 5 percent .

Sainsbury’s has weathered the Covid 19 pandemic like other retailers, as well as stranded customers stocking up with food and drink to consume at home.

Sainsbury’s reported a stronger-than-expected 9.3 percent rise in like-for-like revenue as sales of champagne, steaks and luxury foods soared over the holiday season.

Another famous winner during the pandemic was discount retailer B&M, which sells products ranging from frozen meals to plants and housewares.

The business does not sell online goods, so it did not benefit from the rise in online sales, but it benefited from the change in spending away from non-essential stores as they closed during the shutdowns.

For the latest quarter, B&M posted revenue of £ 1.4 billion, up 23 percent from a year ago.

About Simon Neville
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