European stocks look set to open a tad higher on Tuesday, even as underlying sentiment may remain cautious amid worries about U.S. stimulus and surging coronavirus infections.
U.S. President Joe Biden said he’s open to negotiations on his $1.9 trillion Covid-19 relief proposal, but didn’t rule out pursuing a Democrat-only route for passage.
U.S. Senate Majority Leader Chuck Schumer said earlier Monday an aid package was unlikely before mid-March, just when jobless benefits from the last package will be running out.
A number of GOP Senators have expressed skepticism about the need for additional stimulus after recently approving a $900 billion relief package.
Meanwhile, House Democrats delivered the impeachment case against Donald Trump to the Senate late on Monday, paving the way for a trial over the former president’s alleged role in a violent riot.
On the pandemic front, a senior World Health Organization (WHO) official has warned of the risk of continued transmission of the coronavirus even after large-scale vaccinations.
U.S. infectious-disease chief Anthony Fauci said he’s worried about delays to second doses.
Asian markets dipped as investors looked ahead to the Federal Reserve’s monetary policy decision and briefing by Chair Jerome Powell scheduled for Wednesday.
The dollar rose against a basket of currencies and U.S. Treasury yields hit three-week lows while crude oil fluctuated under $53 a barrel amid prospects of U.S. drillers boosting shale output.
U.S. stocks ended mixed overnight amid concerns over the timing and size of fiscal stimulus. The Dow Jones Industrial Average slipped 0.1 percent, while the S&P 500 rose 0.4 percent and the tech-heavy Nasdaq Composite added 0.7 percent to reach fresh record closing highs.
European markets fell sharply on Monday as investors fretted over tighter Covid-19 restrictions and possible delay in vaccine supplies.
The pan European Stoxx 600 gave up 0.8 percent. The German DAX tumbled 1.7 percent, France’s CAC 40 index shed 1.6 percent and the U.K.’s FTSE 100 dropped 0.8 percent.
Market Analysis
European Shares Seen Higher At Open
2021-01-26 05:46:29
