European stocks look set to open lower on Thursday, with virus woes, China’s crackdown on the country’s tech giants and Beijing’s signal of Reserve Ratio cut likely to be in focus.
Australia’s Sydney has recorded its highest daily rise in COVID-19 cases in months, despite being nearly two weeks into a lockdown.
South Korea has reported its biggest daily jump in coronavirus cases since the start of the pandemic, while Indonesia reported record deaths.
Asian markets fell broadly to hit a six-week low as rising virus cases added to a broad risk-averse mood.
The yuan weakened, China’s government bond yields fell sharply and the dollar held near its highest levels in three months after China’s cabinet floated the possibility of cuts to banks’ reserve requirements to support the real economy, especially small firms.
Hong Kong’s Hang Seng index fell over 2 percent to extend losses for the eighth day as tech stocks continued to sank amid increased regulatory curbs on the sector.
Oil extended losses for a third day as investors await further signals from the OPEC+ alliance on production plans after a breakdown in talks.
European Central Bank President Christine Lagarde will present the results of the institution’s strategy review later today, with the central bank expected to set a new inflation goal.
Destatis is slated to issue Germany’s external trade data. Exports are forecast to climb 0.6 percent month on month and imports to grow 0.4 percent in May.
Across the Atlantic, trading may be impacted by reaction to the weekly jobless claims report.
U.S. stocks posted modest gains overnight and bond yields continued their steep descent as the minutes of the Fed’s mi-June FOMC meeting signaled the U.S. central bank was in no hurry to raise rates or scale back its attest purchase program.
Fed officials at their most recent meeting had discussed tapering but emphasized to continue assessing the economy’s progress at coming meetings.
The Dow and the S&P 500 both rose about 0.3 percent, while the tech-heavy Nasdaq Composite inched up marginally to extend gains for the fourth day and reach a new record closing high.
European stocks rose on Wednesday after the European Commission hiked its growth forecasts for the euro area. A rebound in commodity-linked stocks and lower bond yields also offered some support.
The pan European Stoxx 600 advanced 0.8 percent. The German DAX climbed 1.2 percent, France’s CAC 40 index rose 0.3 percent and the U.K.’s FTSE 100 added 0.7 percent.
Business News
European Shares Seen Tad Lower At Open
2021-07-08 05:37:38
