Benzinga | Oct 8, 2020 04:45AM EDT

European Markets, US Index Futures Advance On Stimulus Optimism

Dow Jones and the S&P 500 rose 1.91% and 1.74% on Wednesday, making it the best day since July as President Donald Trump indicated support aid for airlines and a stimulus package for small businesses. The optimism has led to investor cheer as Dow futures are up 0.50% at press time and the S&P500 futures have advanced 0.54%.

European markets are up after European Central Bank's President Christine Lagarde pledged not to remove monetary support until the pandemic-led economic crisis is not over. While Bundesbank President Jens Weidmann played down the need for additional stimulus, there is consensus across central banks of major European economies to increase support.

Euro Stoxx 50 index has climbed 0.20% at publication time. ECB members are due to speak Thursday and investors will be watching the bank's key Monetary Policy statement of September, which will indicate its stance on dealing with deflation.

London's FTSE 100 index is down marginally by 0.11% at press time. The United Kingdom's Labor Productivity numbers for the second quarter are due for release Thursday.

Germany's DAX is trading up 0.30% after the country's exports for August grew 2.4% month-over-month, higher than the expected 1.4%.

France's CAC 40 index is up 0.05%. No major economic events are due Thursday.

Spain's IBEX index has advanced 0.77% as the country deals with the second wave of coronavirus and hopes for fresh stimulus.

U.S. Dollar Index futures are trading lower marginally to 93.623. The dollar is flat against the Euro at $1.176 and weakened 0.35% against the Sterling to $1.2965.

ETFs with European exposure to watch on Thursday would be Vanguard European Stock Index Fund ETF (NYSE:VGA) and SPDR Euro Stoxx 50 ETF (NYSE:FEZ)