European Stocks To Trade Muted
European bourses are expected to trade slightly weak on Tuesday, despite the strong positive sentiment on Monday as warnings by Moderna CEO on the efficacy of vaccines against the new variant led to the Asian market giving up much of the earlier gains. The uncertainty regarding the vaccines could lead to markets pricing in some of the risks, especially given the alarming coronavirus situation in many parts of Europe.
The CAC Futures (December) is trading 1.33 percent lower. The DAX Futures for December is trading 1.53 percent lower. The FTSE 100 futures for December are trading 1.03 percent lower.
On Monday, the Wall Street rebounded after Friday’s steep losses in the backdrop of concerns that emerged from the new Covid-19 variant. Nasdaq-100 rallied 2.33 percent on Monday to close at 16,399.24, whereas Dow Jones Industrial Average moved up a more modest 0.68 percent to end at 35,135.94.
On Monday, most of the European markets too had recovered smartly as fears on the new Covid variant eased. The pan European Stoxx 600 advanced 0.69 percent. The U.K.’s FTSE 100 gained 0.94 percent, Germany’s DAX ended 0.16 percent up and France’s CAC 40 climbed 0.54 percent, while Switzerland’s SMI gained 0.18 percent.
Dollar Index has now retreated by 0.35 percent to 96, from 96.34 on Monday. In tandem, the EURUSD pair has increased by 0.31 percent to 1.1326, while the GBPUSD pair has moved up by 0.13 percent to 1.3329.
Gold futures for February settlement are trading at $1794.95 per troy ounce, about 0.55 percent higher than the previous close of $1785.20.
WTI Crude for January settlement is trading at $67.56, down 3.46 percent from the previous close whereas Brent Crude for February settlement is trading at $70.52, down 3.69 percent from the previous close. Dim global oil demand outlook in the backdrop of the new virus variant continues to drive the black fluid lower.
American futures point to bearish trends as Nasdaq 100 stock futures is currently in mild negative territory with a decline of 0.45 percent and the Dow Jones Futures is edging down 1.15 percent.
Asian markets have mostly erased earlier gains as fresh warnings on the efficacy of vaccines against the new variant fuelled panic in the Asian bourses. Japan’s Nikkei 225 has shed 1.63 percent, whereas Hong Kong’s Hang Seng and South Korean Kospi have both lost around 2.4 percent. Shanghai Composite is marginally higher from previous close. Indian benchmarks have edged up. Australia’s S&P ASX 200 gained 0.22 percent and New Zealand’s NZX 50 surged 1.63 percent.
Earnings updates are due from France-based Accor and U.K.-based Legal & General Group, Croda International, Future, Easy Jet, Pennon, Shaftesbury, Countryside Properties, Playtech etc.
Inflation numbers for the Euro Area for the month of November is due later in the day. The annual inflation rate is expected to increase to 4.5 percent from 4.1 percent in the month of October.
France also awaits inflation numbers for November. Forecast for the reading is 2.8 percent, a tad higher than the 2.6 percent recorded in October. Final GDP reading for the third quarter will also be announced at the same time.
Switzerland’s KOF Leading Indicators for November is also due in the day. The reading is expected to increase to 110.7, from 109 earlier.
Germany awaits November’s employment numbers. Forecast is for status quo of 5.4 percent.
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