Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

European Stock Futures Lower; Virus Cases Sour Mood

Published 18/01/2021, 07:12
Updated 18/01/2021, 07:13
© Reuters.

© Reuters.

By Peter Nurse 

Investing.com - European stock markets are seen opening marginally lower Monday, starting the week on a downbeat note given Covid-related concerns,  and not reassured by healthy-looking Chinese economic growth.

At 2:10 AM ET (0710 GMT), the DAX futures contract in Germany traded 0.3% lower, CAC 40 futures in France dropped 0.6% and the FTSE 100 futures contract in the U.K. fell 0.1%.

China reported Monday that its economy grew 2.3% last year, as its gross domestic product rose by 6.5% in the fourth quarter from a year ago, helped by retail sales rising 4.6% in the final quarter from a year ago.

The figures from the world’s second largest economy have tended to be overshadowed by worries about the impact of the latest surge in Covid-19 cases, especially in Europe but also further afield.

China has recently locked down over 28 million people to combat the virus. In Europe, opposition to the latest restrictions is growing, as several thousand people held an unauthorized protest in Amsterdam on Sunday before being dispersed by riot police. While, in the U.S., the spread of the coronavirus has hit consumer spending, given Friday’s weak retail sales.

Still, losses are expected to be limited in Europe Monday, with the U.S. on holiday to celebrate Martin Luther King day, and ahead of the latest European Central Bank meeting on Thursday.

Investors will also be keeping a wary eye on events in Washington, amid concerns about possible violence at President-elect Joe Biden’s inauguration on Wednesday as well as how much of his proposed $1.9 trillion stimulus plan will get through Congress given Republican opposition.

Back in Europe, AstraZeneca (NASDAQ:AZN) will be in focus as the drug maker received U.S. approval for its gastric cancer drug.

Oil prices fell Monday as rising Covid-19 cases, particularly in China, the world’s largest crude importer, called into question the recent recovery in demand.

U.S. crude futures traded 0.4% lower at $52.20 a barrel, while the international benchmark Brent contract fell 0.4% to $54.86. Both benchmarks declined by more than 2% on Friday.

Elsewhere, gold futures rose 0.3% to $1,836.05/oz, while EUR/USD traded 0.1% higher at 1.2084.

 

Latest comments

Trump has make China Great again.Cheers.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.