European Shares May Open On Subdued Note
European stocks are seen opening lower on Wednesday amid lingering uncertainties about surging global Covid-19 cases and the upcoming U.S. presidential election.
Mainland China reported the highest daily Covid-19 toll in more than two months and the U.S. looks poised to surpass the high levels logged in the summer, adding to global growth fears.
In Germany, Chancellor Angela Merkel is expected to push for a “lockdown light” in crisis talks with regional leaders today to break the new wave of infections, according to the Bild daily.
U.S. election uncertainty looms, with recent polls showing former Vice President Joe Biden with a narrow lead over President Donald Trump.
Hopes faded for an immediate U.S. stimulus package after Trump admitted that talks have collapsed for a coronavirus stimulus package before Election Day.
“After the election, we will get the best stimulus package you have ever seen,” Trump told reporters at the White House.
Asian markets are trading mixed after Microsoft’s results beat across the board, but quarterly revenue guidance fell short of estimates.
Gold edged lower on a firmer dollar while oil prices fell on fears of oversupply after industry data revealed a bigger-than-expected increase in U.S. crude stockpiles.
France’s statistical office Insee will release consumer sentiment survey results later in the day. The indicator is expected to fall to 93 in October from 95 in September.
U.S. stocks ended mixed overnight as investors reacted to a resurgence of coronavirus hospitalizations and continued uncertainty around a new U.S. stimulus package.
The day’s economic reports proved to be a mixed bag, with durable goods orders increasing solidly in September while a measure of consumer confidence unexpectedly slipped in October.
The Dow Jones Industrial Average dropped 0.8 percent and the S&P 500 eased 0.3 percent, while the tech-heavy Nasdaq Composite rose 0.6 percent.
European markets fell on Tuesday to extend losses from the previous session as coronavirus-related worries coupled with anxiety about the outcome of the U.S. presidential election overshadowed a slew of upbeat earnings results.
The pan European Stoxx 600 fell 1 percent. The German DAX shed 0.9 percent, France’s CAC 40 index lost 1.8 percent and the U.K.’s FTSE 100 declined 1.1 percent.
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