October 23, 2020

Market and Financial News Aggregator

European Markets Likely To Open On Cautious Note

2 min read

The mood in European markets is likely to be quite cautious on Wednesday, ahead of the European Central Bank’s monetary policy announcement tomorrow.

Rising coronavirus cases in several parts of Europe, lingering fears about a no-deal Brexit and AstraZeneca’s announcement that it has put a hold on its coronavirus vaccine trials due to safety concerns may hurt.

AstraZeneca has halted its late-stage COVID-19 vaccine trial due to a potentially unexplained illness in a U.K. volunteer, according to reports citing an email statement issued by the company’s spokesperson.

The potential vaccine is being developed by the pharmaceutical giant in partnership with Oxford University. It is being studied in thousands of patients in the United States and the United Kingdom. The company reportedly said it voluntarily paused vaccination to allow review of safety data by an independent committee.

Markets on Thursday will be watching the central bank’s take on the inflation front and how it plans to check euro’s surge. The ECB is unlikely to announce any big changes to its policy, but might well indicate that it is prepared to loosen policy if required.

On the economic front today, data on Swiss unemployment for the month of August will be out at 1.45 am ET.

Much later in the day, at 9.30 am ET, Germany’s CB Coincidence Index and CB Leading Index reading for July is due.

Portugal’s trade data for July, Ireland’s unemployment rate in August, Hungary’s consumer price inflation data are the other economic data due today.

Crude oil futures are down by about 0.6% after falling about 7.6% on Tuesday amid rising concerns about outlook for energy demand.

Data showing a sharp contraction in Eurozone GDP in the second quarter, rising coronavirus cases in Germany, France and the U.K., fears about a no-deal Brexit, U.S.-China tensions and the sell-off in the U.S. markets pushed down European stocks on Tuesday.

The pan European Stoxx 600 ended down 1.15%. Germany’s DAX slid 1.01%, France’s CAC 40 fell 1.59% and the U.K.’s FTSE 100 edged down 0.12%. Switzerland’s SMI ended lower by 0.46%.

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2020-09-09 01:27:43

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