European Shares Poised For Firm Open
European stocks may open higher on Wednesday after data showed a slight decline in new coronavirus cases. Markets remain hopeful on further stimulus measures from global central banks to mitigate the economic impact of the epidemic.
According to the National Health Commission, mainland China had 1,749 new confirmed cases of coronavirus infections on Tuesday, down from 1,886 cases a day earlier and the lowest since Jan. 29.
Asian markets advanced while the euro languished at a three-year low versus the dollar in reaction to disappointing data from Germany, Europe’s largest economy. Traders also awaited cues from the Federal Reserve’s January meeting minutes due out later in the day.
The Treasury curve remained inverted as investors turned cautious about the economic outlook. Oil gained about 1 percent, while gold prices eased after crossing the key $1,600 level in the previous session.
Overnight, U.S. stocks ended mixed as traders returned to their desks following the long holiday weekend.
While the tech-heavy Nasdaq Composite finished marginally higher, the Dow Jones Industrial Average shed 0.6 percent and the S&P 500 eased 0.3 percent after a surprise sales warning from Apple and disappointing earnings news from Walmart.
European markets ended Tuesday’s session lower as coronavirus worries persisted and data showed German investor confidence deteriorated drastically in February.
The pan European Stoxx 600 declined 0.4 percent. The German DAX gave up 0.8 percent, France’s CAC 40 index declined half a percent and the U.K.’s FTSE 100 slid 0.7 percent.
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