European stocks are likely to open higher on Thursday as bets for increased U.S. stimulus outweighed unrest in Washington and concerns about more lockdowns in major economies.
A Democratic Senate sweep in Georgia has paved the way for Joe Biden to push ahead with his legislative agenda that includes another huge stimulus package.
Disappointing ADP jobs report released overnight also added to expectations that the Federal Reserve might decide to unleash more stimulus.
The world has reacted in shock to the riots and protests in Washington, D.C., though President Trump eventually issued a recorded video urging the people to remain peaceful and support the Capitol police and law enforcement.
On the Covid-19 front, China has downplayed concerns over its refusal to authorize a fact-finding mission to the country by the World Health Organization to study the origins of Covid-19, saying that discussions were ongoing and there had been a "misunderstanding" between the two sides about agreed dates for the visit.
Asian markets advanced along with U.S. stock futures despite reports suggesting that the Trump administration is considering adding Alibaba Group Holding and Tencent Holdings to a blacklist of Chinese companies.
China Mobile shares tumbled in Hong Kong on the New York Stock Exchange's plan to delist the stock.
Gold extended losses due to a surge in yields of U.S. 10-year note and the dollar hovered near its lowest level in nearly three years while oil extended gains for a third day on data showing a bigger-than-expected drop in U.S. crude stockpiles.
Economic confidence and flash consumer price data from euro area and factory orders figures from Germany are due later in the session, headlining a light day for the European economic news.
Across the Atlantic, trading could be impacted by reports on weekly jobless claims, the U.S. trade deficit and service sector activity.
The Labor Department is scheduled to release its more closely watched monthly employment report on Friday, which includes both public and private sector jobs.
U.S. stocks ended mixed overnight as the results of the highly anticipated Georgia Senate runoff elections pointed to Democratic control of Congress, putting big tech antitrust laws back into focus.
The ADP employment report painted a bleak picture for the labor market while minutes from the Fed's meeting last month released later in the day showed all FOMC members favored maintaining the current composition of purchases.
The Dow Jones Industrial Average climbed 1.4 percent to reach a fresh record closing high and the S&P 500 rose 0.6 percent while the tech-heavy Nasdaq Composite shed 0.6 percent.
European stocks rose on Wednesday as oil prices jumped and Moderna Inc.'s Covid-19 vaccine won European Union approval.
The pan European Stoxx 600 rallied 1.4 percent. The German DAX gained 1.8 percent and France's CAC 40 index advanced 1.2 percent while the U.K.'s FTSE 100 soared as much as 3.5 percent to hit a ten-month high.
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