October 31, 2020

Market and Financial News Aggregator

European Stocks May Open On Cautious Note

2 min read

European markets are likely to open on a cautious note Tuesday morning as investors will be looking for some fresh triggers after yesterday’s strong rally.

Earnings announcements and other corporate news, news about coronavirus vaccines and U.S.-China tensions are likely to set the trend for stocks.

Investors will also be following the developments on the Brexit front. According to reports, Britain is likely to tell the European Union that unless there is some progress in trade talks, the British government will step up preparations to leave the bloc without a deal.

The trend on Wall Street, where trading will resume today after a long weekend, is likely to make a significant impact on price movements in European markets during the latter part of today’s session.

Investors will largely be staying cautious, looking ahead to the European Central Bank’s monetary policy announcement, due on Thursday.

On the economic front today, Destatis will release Germany trade data for the month of July at 2 am ET. Exports are forecast to grow 5% on month and imports to grow 3.3%.

At 2.45 am ET, data on France Trade Balance is due. In June France reported a trade deficit of EUR 8 billion.

Foreign trade figures for Hungary and Austria are due at 3 am ET. A little later, Statistics Sweden is scheduled to release industrial production and new orders data.

Italy’s Istat will release the country’s retail sales numbers for July, and finally at 5 am ET, second-quarter Eurozone GDP data is due from Statistical Office.

Optimism about coronavirus vaccines and data showing a significant improvement in eurozone investors confidence offset concerns about U.S.-China tensions and data showing a moderation in German industrial production and lifted European stocks on Monday.

The pan European Stoxx 600 climbed 1.67%. The U.K.’s FTSE 100 gained 2.39%, Germany’s DAX surged up 2.01% and France’s CAC 40 ended up 1.79%, while Switzerland’s SMI climbed 1.43%.

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2020-09-08 01:38:38

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