Markets

European Shares Seen Higher At Open

(RTTNews) - European stocks look set to open higher on Wednesday even as underlying sentiment may remain cautious amid rising Covid-19 cases and persistent worries about the global economic recovery.

Tensions between the U.S. and China came to the fore of the annual UN General Assembly in New York, with U.S. President Donald Trump blaming Beijing for unleashing a "plague" on the world, while Chinese President Xi Jinping said his country has no intention to fight either a "cold war" or a "hot war" with any country.

Asian markets are trading mixed, with Australian stocks rallying after retail sales data beat forecasts. The U.S. dollar extended gains and gold edged higher on concerns over economic recovery, while oil prices fell after a surprise rise in U.S. crude inventories.

Flash Purchasing Managers' survey data from euro area and the U.K. are due later in the session, headlining a busy day for the European economic news.

Overnight, U.S. stocks recovered from intraday losses to end on a firm note despite fresh lockdown measures in parts of Europe and continued uncertainty about a new relief package in the U.S.

Buying emerged at lower levels after Federal Reserve Chair Jerome Powell said the central bank remains "committed to using our tools to do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible."

Separately, U.S. Treasury Secretary Steven Mnuchin said the White House continues to seek an agreement with both parties in Congress on another fiscal relief package.

The Dow rose half a percent, the S&P 500 gained 1 percent and the tech-heavy Nasdaq Composite climbed 1.7 percent.

European markets eked out modest gains on Tuesday after a sharp setback in the previous session.

The pan European Stoxx 600 edged up 0.2 percent as British Prime Minister Boris Johnson set out a raft of new coronavirus restrictions for England which could last for up to six months.

The German DAX and the U.K.'s FTSE 100 rose about 0.4 percent, while France's CAC 40 index dropped 0.4 percent.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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