Markets

European Shares Seen Lower As EU Summit Drags On

(RTTNews) - European stocks may open a tad lower on Monday as EU leaders continue to struggle to reach a deal on a huge post-coronavirus recovery package for the bloc.

Talks stretched into a fourth day amid deep differences between the leaders over the size and condition of a €750bn recovery fund.

Coronavirus cases also remain on the rise as debate begins in the U.S. this week on a new relief bill.

Sunday marked the 41st straight day that the seven-day average for new daily coronavirus infections in the United States trended upward. Kentucky, Louisiana, Oregon and South Carolina all set new single-day records on Sunday.

The novel coronavirus pandemic has now killed more than 600,000 people worldwide.

Asian shares remain mostly lower after data showed Japan's exports plunged at a double-digit pace for the fourth month in a row in June. Chinese markets outperformed, with the benchmark Shanghai Composite rising as much as 2.7 percent.

The dollar gained ground versus the yen and gold traded flat while oil extended losses toward $40 a barrel.

Current account data from euro area is due later in the day, headlining a light day for the European economic news.

Earlier today, China's central bank left its key interest rates unchanged for the third consecutive month as the economy showed signs of recovery from the unprecedented slump caused by the coronavirus pandemic.

The one-year loan prime rate was retained at 3.85 percent and the five-year loan prime rate was maintained at 4.65 percent.

The U.S. calendar for this week is relatively quiet, with traders likely to keep an eye on the weekly jobless claims report as well as data on new and existing home sales.

Earnings news may take the spotlight, with IBM Corp., Coca-Cola, Microsoft, AT&T, Twitter and Intel among a slew of companies due to report their quarterly results.

U.S. stocks ended Friday's session on a mixed note as Netflix forecast slower-than-expected subscriber growth and data showed U.S. consumer sentiment turned decidedly more pessimistic in July.

The Dow Jones Industrial Average slipped 0.2 percent. The tech-heavy Nasdaq Composite index and the S&P 500 rose around 0.3 percent as traders weighed the prospect of more fiscal stimulus against the troubling headlines on the coronavirus front.

European markets also ended mixed on Friday as investors reacted to a slew of earnings and looked ahead to an EU meeting to discuss the bloc's €750 billion coronavirus recovery fund.

The pan European Stoxx 600 edged up 0.2 percent. The German DAX rose 0.4 percent and the U.K.'s FTSE 100 gained 0.6 percent, while France's CAC 40 index dropped 0.3 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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