European Shares Set To Fall Amid Concerns Over Virus Spread
European stocks are likely to open lower on Friday as rising coronavirus infections in the U.S. and Europe spurred risk aversion.
New U.S. Covid-19 infections hit fresh records and remained above 100,000 for an eighth consecutive day, prompting cities and states, including Chicago, Detroit and California, to slap new restrictions on public life.
In Europe, Germany’s health minister said he expects that restrictions imposed to curb the coronavirus pandemic will continue through winter. France intends to keep lockdown for at least two more weeks.
The United Kingdom posted its biggest one-day jump in laboratory-confirmed coronavirus infections.
Spain’s southern region of Andalusia is attempting to carry out mass testing in the areas of Ronda and Campillos.
Immunity to the virus is likely lower than previously estimated, Sweden’s top epidemiologist and architect of its unorthodox pandemic strategy said as new infections and hospital admissions surged in the country.
European officials have warned against complacency and said measures to control infections must continue despite recent positive news about vaccine development.
Fed Chairman Jerome Powell said during a discussion with other central bankers that he worries about the long-term impacts from the coronavirus pandemic.
White House coronavirus advisor Dr. Anthony Fauci said that a vaccine to bring an end to the pandemic now appears to be on the horizon, but it may not be enough to help eradicate the disease
Asian stocks are trading mixed as investors fretted over rising Covid-19 cases and further setbacks in U.S. stimulus talks.
Top congressional Democrats renewed calls over a multitrillion-dollar coronavirus aid proposal on Thursday, but a top Republican rejected their approach as too expensive.
Gold inched up and the dollar held steady, while oil prices fell over 1 percent after the EIA reported an unexpected weekly climb in U.S. crude supplies.
Revised quarterly national accounts data from euro area is due later in the day, headlining a light day for the European economic news.
Across the Atlantic, trading could be impacted by reaction to reports on producer price inflation in October and consumer sentiment in November.
U.S. stocks fell overnight as new curbs on activity in New York and rising Covid-19 hospitalizations stoked fresh worries over economic growth.
Fed Chair Jerome Powell’s cautious comments during a virtual event also added to the downbeat sentiment. With the virus spreading, the next few months could be challenging despite recent upbeat news about a potential vaccine, Powell said.
The Dow Jones Industrial Average dropped 1.1 percent, the S&P 500 gave up 1 percent and the tech-heavy Nasdaq Composite eased 0.7 percent.
European markets fell on profit taking Thursday after strong gains earlier in the week on vaccine hopes.
The pan European Stoxx 600 shed 0.9 percent. The German DAX lost 1.2 percent, France’s CAC 40 index tumbled 1.5 percent and the U.K.’s FTSE 100 declined 0.7 percent.
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