Markets

European Shares Seen Opening On Cautious Note

(RTTNews) - European stocks are seen opening lower on Tuesday as investors watch the latest earnings news and await any new developments on the U.S. stimulus package.

The dollar rose against the yen, gold inched lower and oil extended losses for the fourth day as a deadline for U.S. lawmakers to pass an economic stimulus bill approached.

Asian markets slipped as Europe grappled with big surges in coronavirus case counts and investors fretted about the risk of a dispute U.S. election outcome.

All governments should focus on the fundamentals that help to break the chains of transmission and save both lives and livelihoods, the World Health Organization (WHO) said as Covid-19 cases rise, particularly in Europe and North America.

Ahead of the final debate between U.S. President Donald Trump and his Democratic challenger Joe Biden on Thursday, a poll showed that Biden's once-encouraging lead over incumbent Trump has narrowed.

Producer price data from Germany and current account figures from euro area are due later in the session, headlining a light day for the European economic news.

Across the Atlantic, trading may be impacted by reaction to the latest earnings news as well as the release of a report on new residential construction for September.

Earlier today, China's central bank left its benchmark lending rates unchanged for the sixth consecutive month, as widely expected.

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.

U.S. stocks hit their lowest levels in almost two weeks overnight, as a deal on more stimulus remained elusive and Fed officials warned that lack of help from Congress will threaten recovery.

The Dow Jones Industrial Average dropped 1.4 percent, the tech-heavy Nasdaq Composite shed 1.7 percent and the S&P 500 gave up 1.6 percent.

European markets fell on Monday as Chinese GDP data missed forecasts and a new raft of new coronavirus restrictions came into force in several countries.

The pan European Stoxx 600 eased 0.2 percent. The German DAX gave up 0.4 percent, France's CAC 40 index slipped 0.1 percent and the U.K.'s FTSE 100 declined 0.6 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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