European Shares Seen Tad Higher At Open
European stocks are seen opening higher on Wednesday as investors pin hopes on a swift economic recovery and react to the latest news on the coronavirus front.
Better-than-expected Chinese manufacturing data and solid U.S. factory data released overnight have raised optimism of a post-pandemic economic recovery.
Texas Gov. Greg Abbott said he hopes to provide the “next steps” on coronavirus restrictions in the state sometime next week.
New York City is delaying the start of school for the city’s 1.1 million students after teachers said they would consider striking if health and safety measures weren’t in place.
A Covid-19 vaccine could be available earlier than expected if ongoing clinical trials produce overwhelmingly positive results, Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said in an interview with Kaiser Health News.
On the stimulus front, U.S. Treasury Secretary Steven Mnuchin told lawmakers on Tuesday that he believes “a bipartisan agreement still should be reached” to provide funding for schools, testing, vaccines, child care and other key priorities.
Asian markets are trading mixed after Australia reported its worst drop in GDP ever.
Gold edged higher, the U.S. dollar held steady and Treasury yields were little changed, while crude oil climbed above $43 after China signaled a pronounced recovery in crude consumption.
U.S. stocks notched fresh record highs overnight as strong Chinese factory activity data signaled rising global demand for exports and another report showed manufacturing activity in the U.S. expanded at a faster rate in August.
The tech-heavy Nasdaq Composite climbed 1.4 percent and the S&P 500 added 0.8 percent to reach fresh record closing highs, while the Dow Jones Industrial Average advanced 0.8 percent.
European stocks fell for a fourth consecutive session on Tuesday as investors reacted to a slew of economic data from across the globe and weighed the possibility of further quarantine restrictions in the U.K.
The pan European Stoxx 600 eased 0.4 percent. France’s CAC 40 index slid 0.2 percent and the U.K.’s FTSE 100 tumbled 1.7 percent, while the German DAX edged up 0.2 percent.
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