European Shares Likely To Open On Firm Note
European stocks look set to open on a positive note Tuesday after steep losses in the previous session.
Underlying sentiment, however, may remain cautious as hopes of further stimulus fade and reports suggest that Beijing is readying a list of U.S. technology companies to blacklist.
Asian markets remain broadly lower on concerns a new round of pandemic business restrictions to stem rising coronavirus counts would threaten a nascent recovery.
A resurgent dollar held on to sharp gains amid virus fears and worries over delays in fresh U.S. stimulus.
Traders also kept a close eye on U.S.-China tensions after TikTok’s parent company ByteDance and prospective buyer Oracle issued conflicting statements regarding basic terms of their proposed deal.
Elsewhere, Taiwan’s military said it has the right to act in self-defense and launch a counterattack when faced with “harassment and threats”, in an apparent warning to China.
Oil edged up slightly in Asian trade, while gold hovered near its lowest level since Aug. 12.
The interest rate announcement from Sweden’s central bank is due later in the day, headlining a light day for the European economic news.
Overnight, U.S. stocks tumbled amid stalled stimulus talks, rising U.S.-China tensions and allegations of illegal accounts and funds transfers by several global banks over nearly two decades.
The Dow fell nearly 950 points at one stage before recovering some lost ground to end the session 1.8 percent lower. The S&P 500 dropped 1.2 percent while the tech-heavy Nasdaq Composite slid 0.1 percent.
European markets witnessed their worst sell-off in three months on Monday, with banks and travel-related companies pacing the declines.
The pan European Stoxx 600 slumped 3.2 percent as investors weighed the implications of an explosive news report on global banks as well as an uptick in coronavirus infections in several countries across Europe.
The German DAX plunged 4.4 percent, France’s CAC 40 index plummeted 3.7 percent and the U.K.’s FTSE 100 gave up 3.4 percent.
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