Vaccine optimism, Biden transition progress

LONDON — European stocks are expected to open higher on Tuesday amid growing optimism that another effective coronavirus vaccine has been discovered, and on news that the Trump administration has accepted President-elect Joe Biden’s transition into office.

London’s FTSE is seen opening 33 points higher at 6,378, Germany’s DAX 86 points higher at 13,258, France’s CAC 40 up 32 points at 5,538 and Italy’s FTSE MIB 210 points higher at 21,921, according to IG.

European markets are tracking U.S. stock futures which climbed in overnight trading on Monday following a strong session on Wall Street boosted by positive vaccine news from AstraZeneca, which said interim analysis showed its coronavirus vaccine has an average efficacy of 70%. The news followed strong results from Pfizer-BioNTech and Moderna regarding their vaccine candidates.

The gains in futures also came after General Services Administration chief Emily Murphy told President-elect Joe Biden that the Trump administration is making federal resources available for his transition into office.

Murphy had withheld her decision on ascertaining Biden’s electoral victory for weeks after the Nov. 3 election; President Donald Trump soon tweeted that he approved of the move.

News that Biden has picked former U.S. Fed Chair Yellen to be Treasury secretary may also have buoyed investor sentiment on Tuesday. If confirmed by the Senate, she is set to be the first woman to lead the department. Stocks in Japan led gains among Asia-Pacific markets in Tuesday trade.

There are no major earnings from Europe Tuesday; on the data front, Germany’s Ifo Institute releases the latest business climate survey results.

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– CNBC’s Yun Li and Kevin Breuninger contributed reporting to this story.

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