European stocks rise as possible 'blue sweep' in Georgia lifts U.S. stimulus hopes

European stocks rose on Wednesday, with economically sensitive sectors such as energy and banks leading the gains, as investors braced for a Democratic win in crucial U.S. Senate run-off election in Georgia that could drive bigger fiscal stimulus.

The pan-European STOXX 600 index rose 0.4%, while UK's FTSE 100 edged 0.8% higher while Germany's DAX gained 0.3%. Oil majors BP, Royal Dutch Shell and Total gained as crude prices rose to their highest since February 2020 on Saudi Arabia's pledge to cut output more than expected in a meeting with allied producers.

Banks advanced the most, up 2.5%, while other cyclical sectors such as automakers and insurers added more than 1%. While the final votes are yet to be counted in the run-off elections, markets appeared to price in a 'blue wave' that could usher in larger fiscal stimulus and pave the way for President-elect Joe Biden to push through greater corporate regulation and higher taxes.

In Europe, a pullback in healthcare, food & beverage and tech shares capped gains in major bourses.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)