European Shares Seen Flat To Higher
European stocks look set to open higher on Tuesday even as underlying sentiment may remain cautious amid the continuous spread of Covid-19. The virus has so far claimed more than 73,000 victims out of 1.32 million confirmed cases.
British Prime Minister Boris Johnson has been moved to intensive care, underscoring just how indiscriminate this virus is.
France reported record toll of 833 new coronavirus deaths on Monday, with
Finance Minister Bruno Le Maire warning the country could see its deepest recession this year since the end of World War II.
Italy’s coronavirus death toll shot up on Monday from its lowest level in more than two weeks, though the rise in new infections dropped to a record low of just 2.8 percent.
Spain had its fourth consecutive day of reporting a drop in Covid-19-related deaths, while China reported zero new Covid-19 deaths for the first time since January.
The National Health Commission reported 32 new cases across China, all of which were arrivals from another country. There were also 30 new asymptomatic cases.
Elsewhere, the number of novel coronavirus cases in the United States surpassed 368,000 early Tuesday morning across all 50 states, the District of Columbia, Puerto Rico, Guam and the U.S. Virgin Islands.
Asian markets followed Wall Street higher amid optimism that the global coronavirus pandemic could be stabilizing.
Japanese Prime Minister Shinzo Abe pledged to roll out an unprecedented economic stimulus as he prepares to declare a state of emergency for the capital Tokyo and six other prefectures, for a period of about one month.
Singapore announced an additional S$5.1 billion (US$3.6 billion) stimulus to save jobs and protect the livelihoods of people amid the spread of coronavirus.
European finance ministers will meet for a videoconference today and it is likely that they will agree on a framework for delivering financial support to the countries worst hit by the pandemic.
Gold slipped from a four-week high as the dollar firmed up. Oil resumed gains after falling sharply overnight.
In economic news, Destatis is scheduled to issue Germany’s industrial production data later in the day. Economists expect production to fall 0.9 percent sequentially in February, reversing a 3 percent increase in January.
U.S. stocks had their best day in two weeks on Monday after the reported death tolls in some of the world’s coronavirus hot spots showed signs of easing over the weekend.
The Dow Jones Industrial Average soared 7.7 percent, the tech-heavy Nasdaq Composite jumped 7.3 percent and the S&P 500 surged 7 percent.
European markets rose the most in nearly two weeks on Monday after data showed a drop in new coronavirus cases and deaths in the region.
The pan European Stoxx 600 gained 3.7 percent. The German DAX rallied 5.8 percent, France’s CAC 40 index climbed 4.6 percent and the U.K.’s FTSE 100 advanced 3.1 percent.
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