Markets

European Shares Seen Rising On Vaccine Hopes

(RTTNews) - European stocks are seen opening higher on Wednesday after U.S. biotech firm Moderna said it would enter the final stage of human trials for its Covid-19 vaccine on July 27.

Asian markets pared early gains, with Chinese and Hong Kong stocks declining after U.S. President Donald Trump ordered an end to Hong Kong's special status under U.S. law and Beijing vowed retaliatory sanctions against U.S. individuals and entities.

"Hong Kong affairs are purely China's internal affairs and no foreign country has the right to interfere," China's foreign ministry said.

The euro hit a four-month high versus the dollar ahead of a special EU summit on July 17 and 18 in Brussels, with reports suggesting that Germany is willing to compromise on the European recovery fund that will limit the economic damage to the bloc from the pandemic.

The European Central Bank meeting is coming up on Thursday with little change expected.

The Canadian central bank is expected to leave rates on hold at a policy announcement later today.

Earlier today, the Bank of Japan kept its monetary policy steady and maintained its view that the economy would gradually emerge from the coronavirus pandemic's devastating blow from the latter half of this year.

The dollar was subdued after an uptick in U.S. inflation and news of progress in vaccine development, while oil edged higher on data showing a drop in U.S. stockpiles.

Consumer and producer price data from the U.K. are due later in the session, headlining a light day for the European economic news.

Across the Atlantic, reports on industrial production, import and export prices, and New York manufacturing activity may attract some attention.

On the earnings front, Goldman Sachs, BNY Mellon, Progressive, U.S. Bancorp and UnitedHealth are among the companies due to report their quarterly results before the start of trading.

U.S. stocks posted strong gains overnight as JPMorgan Chase and Citigroup reported better-than-expected results for the second quarter and investors pinned hopes for more fiscal stimulus.

The Dow Jones Industrial Average jumped 2.1 percent and the S&P 500 gained 1.3 percent to reach one-month highs, while the tech-heavy Nasdaq Composite index rose 0.9 percent.

European markets fell on Tuesday, with worries over simmering U.S.-China tensions and the reintroduction of coronavirus-related restrictions in California denting sentiment.

The pan European Stoxx 600 shed 0.8 percent. The German DAX dropped 0.8 percent and France's CAC 40 index declined 1 percent while the U.K.'s FTSE 100 inched up 0.1 percent, thanks to a weaker pound following disappointing May GDP data.

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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