LONDON — European shares rose on Wednesday, as initial dismay at U.S. President Donald Trump’s decision to cancel fiscal stimulus negotiations with lawmakers in Washington was replaced by optimism about an aid package after the U.S. elections.
Trump broke off talks with Democrats in a tweet, saying that negotiations will stop until after the Nov. 3 election, when he promised a major stimulus bill if he wins.
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The news quickly rattled Wall Street but Asian investors became less concerned overnight on the grounds that whoever wins the election will still introduce a fiscal stimulus bill.
Asian stocks hit two-week highs and European shares, which opened slightly in the red, quickly rose, helped by upbeat earnings reports.
The STOXX 600 was up 0.2 per cent on the day by 0757 GMT and London’s FTSE 100 was up 0.1 per cent.
MSCI world equity index, which tracks shares in 49 countries and had climbed to a three-week high before the stimulus talks were canceled, was up 0.1 per cent.