European Shares Likely To Open On Subdued Note
European stocks are likely to open lower on Friday amid renewed concerns about U.S. stimulus and climbing Covid-19 cases globally.
While U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi cited progress over a new Covid-19 relief package, Republican Senate Majority Leader Mitch McConnell’s staff were skeptical compromises could be made.
The global Covid-19 caseload has climbed over 70 million with 1,588,437 deaths as a U.S. government advisory panel endorsed widespread use of Pfizer’s coronavirus vaccine.
On the Brexit front, British Prime Minister Boris Johnson said there was a “strong possibility” Britain and the EU would fail to strike a trade deal.
Asian markets are trading mixed amid signs the coronavirus pandemic’s damage to the U.S. economy is worsening.
Gold held steady while oil traded flat after climbing nearly 3 percent overnight on hopes of a speedier economic recovery as coronavirus vaccine rollouts begin.
Final consumer price figures and semi-annual forecasts from Germany are due later in the session, headlining a light day for the European economic news.
Across the Atlantic, the developments on stimulus may overshadow reports on producer price inflation and consumer sentiment.
Overnight, U.S. stocks ended mixed as jobless claims figures exceeded estimates and lawmakers remained at odds over a new fiscal relief package. The Dow Jones Industrial Average slipped 0.2 percent and the S&P 500 edged down 0.1 percent, while the tech-heavy Nasdaq Composite rose half a percent.
European markets also ended mixed on Thursday as the ECB rolled out more stimulus measures but forecast a slower rebound in growth next year.
The pan European Stoxx 600 eased 0.4 percent. The German DAX dropped 0.3 percent, while France’s CAC 40 index inched up 0.1 percent and the U.K.’s FTSE 100 rose half a percent.
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