Euro stoxx 50 futures fell 0.03%, German DAX futures were up 0.03% and Britain’s FTSE futures were up 0.18%, pointing to a subdued start to European trade.
U.S. Treasury yields saw their first full-session decline in 2021 after rising for six consecutive sessions as investors expect more spending by the incoming Joe Biden administration. An auction of $24 billion in 30-year bonds was also well bid, which dragged yields down further.
Federal Reserve Governor Lael Brainard pushed back against suggestions the Fed could taper its bond-buying program in 2021. Fed Chairman Jerome Powell will take part in a webinar later in the day, where he is expected to discuss topics including the central bank’s policy framework.
Across the Atlantic, European Central Bank council member Francois Villeroy de Galhau said the central bank will keep an easy stance for as long as needed.
The House of Representatives voted 232-197 to impeach Trump on the single charge of incitement of insurrection for his role in a riot by his supporters that left five dead and Capitol Hill ransacked.
This is Trump’s second impeachment, coming a little more than a year after his first and makes him the first U.S. president to face a second impeachment. All Democrats and ten Republicans, including Liz Cheney, voted for the impeachment. Top U.S. officials have reportedly cancelled international travel plans for the week amid the chaos.
Some investors remained cautiously optimistic.
“This will be a great year for the economy and earnings, but just a good year for the stock market … in other words, I think multiples are held back a bit because of modestly rising interest rates and inflation,” Nuveen chief equity strategist Bob Doll told Bloomberg.
Asian Stocks Up Over Expectations of Further U.S. Stimulus, Trump Impeachment
The pan-European Stoxx 50 climbed up by 0.12% to 3,616.51. In the cash markets, the DAX futures Germany was trading 0.08% up at 13939.71. CAC 40 futures in France climbed up by 0.21% to 5,662.67, while the FTSE 100 futures in the U.K. fell by 0.13% to 6745.52,at the time of writing.