European stocks rise on US stimulus hopes, but rising Covid-19 infections curb gains

European stocks rose in early trading on Tuesday, to resume gains after a drop yesterday, to head for the second daily gain in 3 days, on hopes about the US stimulus package, but today's gains are being ebbed by a spike of Covid-19 infections to a new record high in Europe.

The Stoxx Europe 600 index rose 0.2% as of 11:12 GMT, after it closed lower by 0.3% yesterday, after a gain by 1.25% on Friday.

The pan European index opened higher today, to head for the second daily gain in 3 days, with most of the major European markets and sectors seeing green today.

 The banking sector saw the largest gains in Europe today, rising more than 1%, after UBS bank reported better-than-expected Q3 earnings.

The US House of Representatives spokesman Drew Hamill said on Monday that House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued to narrow their differences on the aid package in a telephone conversation.

Hamill added that by the end of Tuesday there will be clarity on whether the aid bill can be passed before the November 3 presidential election.

Reuters reported that new coronavirus cases in Europe surged to a record high on Monday, which renewed concerns about the European economic recovery in case of re-imposing lockdown restrictions again.

S&P 500 futures rose 0.5%, after closing lower by 1.6% yesterday, due to a broad risk-off mood.

Back to Europe, the Euro Stoxx 50 index rose 0.2%, France's CAC 40 added 0.7%, Germany's DAX rose less than 0.1%, and the UK's FTSE 100 rose 0.3%.