European Shares Seen Tad Higher At Open

European stocks are likely to open higher on Monday after China’s central bank indicated possible easing steps to support a slowing economy.

The upside, however, may remain limited as Europe battles a fresh wave of coronavirus infections.

The People’s Bank of China flagged chances of policy easing by making some changes in the wording of the third-quarter monetary policy implementation report.

Earlier today, China maintained its benchmark loan prime rates for the 19th consecutive month, as widely expected.

On the Covid-19 front, the World Health Organization has said another 500,000 people in Europe could die of Covid by March next year unless urgent action is taken.

Austria said it would reintroduce lockdowns and make vaccination mandatory from February.

Other countries including Germany, Slovakia, the Czech Republic and Belgium are also bringing in measures to fight a worrying jump in new infections.

Dutch police said Sunday they had arrested 48 people after a second night of violent riots erupted over the government’s coronavirus measures.

Meanwhile, the U.S. House of Representatives on Friday passed the largest expansion of the social safety net in decades.

The Build Back Better bill now heads to the Senate, where it’s likely to undergo some changes in order to win the support of divided moderates and liberals.

Asian markets fell broadly while the dollar strengthened after Federal Reserve officials Richard Clarida and Christopher Waller on Friday suggested that a faster pace of stimulus tapering may be appropriate amid a quickening recovery and heated inflation.

Gold steadied after hitting a two-week low while oil extended declines on the prospect of key consumers adding emergency supplies.

U.S. stocks ended mixed on Friday amid signs of rising Covid-19 cases in the U.S. and Europe.

The Dow shed 0.8 percent to extend losses for the third straight session while the S&P 500 slipped 0.1 percent.

The tech-heavy Nasdaq Composite rose 0.4 percent to reach a new record closing high as bond yields fell.

European stocks ended Friday’s session in the red as Covid-19 related lockdowns returned to the continent, raising concerns about growth.

The pan European Stoxx 600 eased 0.3 percent. The German DAX and France’s CAC 40 index both fell around 0.4 percent while the U.K.’s FTSE 100 dipped half a percent.

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