European stocks may open lower on Tuesday after China reported 143 new symptomatic coronavirus cases, the highest daily figure since infections began to rise again on July 20. The latest clusters are mainly driven by the highly transmissible Delta variant.
Uncertainty around the Fed’s taper timeline may also weigh after two Fed officials said the U.S. economy is growing rapidly and that inflation is already at a level that could satisfy one leg of a key test for the beginning of interest rate hikes.
Asian markets traded mixed as commodities steadied after steep falls on concerns over the spread of the Delta variant of the coronavirus.
The dollar held overnight gains while 10-year Treasury yields dipped from three-week highs as the U.S. Senate gets closer to approving president Joe Biden’s $1tn infrastructure package. Final Senate votes are expected later today, and the bill would then go to the House.
Oil edged up after hitting a three-week low in the previous session, while Bitcoin traded back around $46,000.
In economic releases, Germany’s ZEW economic confidence survey results are due later in the session. Economists expect the economic sentiment index to fall to 56.7 in August from 63.3 in July.
U.S. stocks fell from record highs overnight and commodities slumped, as investors fretted over an early tapering of the Federal Reserve’s economic support measures and new coronavirus-related restrictions in Asia, especially China.
The Dow dropped 0.3 percent and the S&P 500 slipped marginally while the tech-heavy Nasdaq Composite index edged up 0.2 percent.
European stocks ended mixed on Monday as surging COVID-19 cases in the United States and China threatened to slow economic recovery.
The pan European Stoxx 600 rose 0.2 percent. The German DAX and France’s CAC 40 index both edged down 0.1 percent while the U.K.’s FTSE 100 inched up 0.1 percent.
Business News
European Shares Seen Tad Lower At Open
2021-08-10 05:50:58
