European stocks soared due to hopes of additional stimulus

European stocks gained on Monday. The Stoxx Europe 600 Index rallied by 0.7%. Stock markets have soared higher in recent weeks. Despite that, there are still plenty of concerns about the health of the global economy, with coronavirus infections rising rapidly in parts of the U.S.

According to analysts’ forecasts, unemployment could hit almost 10% in the euro area by the end of the year, as the economy continues deteriorating. However, the EU appears ready to accept 390 billion Euros in grants for their fund. Sentiment improved after that news, and futures surged forward.

The Nasdaq 100 climbed up by 0.3%. In Asia, the MSCI Pacific Index also soared by 0.3%, while the MSCI Emerging Market Index surged forward by 0.4%.

Intel, Microsoft, Twitter, and Tesla were among the stocks slated to deliver results this week. The market fluctuated in the U.S. as investors were waiting for several earnings reports later in the week. The S&P 500 Index changed insignificantly during Monday. However, it had  a third straight weekly gain before the last session.

AstraZeneca profited ahead of the highly anticipated results from early vaccine studies. Meanwhile, Noble Energy began gaining after Chevron agreed to buy the company for about $5 billion in shares.

What do analysts say?

The economic dislocation of coronavirus triggered a tremendous response by fiscal and monetary policymakers as well as central banks – stated Gene Tannuzzo, a portfolio manager at Columbia Threadneedle. He added that, while these measures helped stabilize markets, investors still find themselves in an environment of continued low growth.

It seems Euro-area leaders are close to own agreement on a stimulus. Traders are carefully following events in Washington, where lawmakers plan to begin formulating a rescue package to replace some of the expiring benefits from earlier versions.

Still, analysts are concerned because of the pandemic. Los Angeles Mayor Eric Garcetti has announced that the city is on the brink of another stay-at-home order. Hong Kong also added a record of 108 infections.