European Shares Set To Open On Cautious Note
(RTTNews) - European stocks are seen opening on a cautious note Thursday as market participants keep a close eye on the trajectory of coronavirus and delay in U.S. stimulus.
Several Fed officials on Wednesday said more fiscal stimulus is critical to keep the economic recovery on track.
As global growth worries mount, the United Nations said in a report that a repeat of the cost-cutting conducted by governments after the financial crisis of 2008-09 would choke off recovery and risk a double-dip recession in 2022.
Asian markets fell broadly as investors fretted about the fallout from a second wave of Covid-19 infections. The U.K. and France are seeing a worrying escalation in new cases as winter approaches.
Canadian Prime Minister Justin Trudeau said some regions in the country are already experiencing a second wave of the virus. Israel is tightening its coronavirus lockdown after an alarming spike in new cases.
Gold hovered near two-month low on a stronger dollar while oil edged lower on concerns the U.S. economic recovery is slowing.
The monetary policy announcement from the Swiss National Bank and business confidence survey results from Germany are due later in the session, headlining a busy day for the European economic news.
Across the Atlantic, trading may be impacted by reaction to reports on weekly jobless claims and new home sales as well as additional testimony from Powell and Treasury Secretary Steven Mnuchin before a Senate committee on the economic response to the pandemic.
Overnight, U.S. stocks tumbled to close at their lowest levels in well over a month after data showed business activity cooled in September.
The stimulus stalemate in Congress and worries that coronavirus infections could rise also heightened concerns about the economy, with President Donald Trump indicating the U.S. would not follow the U.K.'s lead and implement a second round of lockdowns.
The Dow lost 1.9 percent, the tech-heavy Nasdaq Composite plunged 3 percent and the S&P 500 slumped 2.4 percent.
European markets rose on Wednesday as investors reacted to key data releases from the euro zone and Fed Chair Jerome Powell's measured comments highlighting the need for more fiscal stimulus.
The pan European Stoxx 600 gained 0.6 percent. The German DAX rose 0.4 percent, France's CAC 40 index gained 0.6 percent and the U.K.'s FTSE 100 rallied 1.2 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.