European Shares Seen Opening Mixed In Directionless Trade
European stocks may struggle for traction on Friday as downbeat U.S. data released overnight cast a shadow over the economic outlook.
Amid heightened economic uncertainty, the Federal Reserve said on Thursday it’s considering extending its caps on banks’ dividends and stock repurchase for the rest of the year.
Asian markets are trading mostly higher after the Bank of Japan signaled readiness to ramp up stimulus and the Bank of England said it was considering negative interest rates amid rising Covid-19 cases, higher unemployment and a possible new Brexit shock.
New Zealand’s Finance Minister Grant Robertson said the country will see a strong rebound in the three months that end in September.
Elsewhere, data showed the key inflation gauge in Japan went negative again last month amid a steep drop in the cost of hotel accommodation.
London copper hit a more than two-year high on a weaker dollar and amid hopes that Chinese stimulus would spur demand in the world’s biggest metals consumer.
The dollar held steady and gold prices rose while oil prices drifted lower after three days of gains.
Retail sales data from the U.K. is due later in the session, headlining a light day for the European economic news.
Overnight, U.S. stocks ended lower as weak jobless claims figures added to concerns that the economic recovery is plateauing.
The Dow slid half a percent, the tech-heavy Nasdaq Composite shed 1.3 percent and the S&P 500 dropped 0.8 percent.
European stocks also fell on Thursday as investors were disappointed by the lack of details around the Federal Reserve’s stimulus plans.
The Stoxx Europe 600 index ended half a percent lower. The German DAX gave up 0.4 percent, France’s CAC 40 index declined 0.7 percent and the U.K.’s FTSE 100 slipped half a percent.
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