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

European Stocks Seen Mixed; J&J Vaccine News in Focus

Published 10/13/2020, 02:01 AM
Updated 10/13/2020, 02:03 AM
© Reuters.

© Reuters.

By Peter Nurse 

Investing.com - European stock markets are seen opening mixed Tuesday, with investors having to sift through the conflicting impulses of strong Chinese export data and a setback in the progress towards a Covid-19 vaccine.

At 2:05 AM ET (0605 GMT), the DAX futures contract in Germany traded 0.2% hlower, CAC 40 futures in France were flat, while the FTSE 100 futures contract in the U.K. rose 0.2%. 

Earlier Tuesday, official data showed that China's exports grew at a slightly faster rate in September, up 9.9% on the year last month, compared with a 9.5% increase in August. This marks a fourth straight month of gains, suggesting that a global economic recovery is underway.

European economic news was less impressive, with German consumer prices falling in September, confirming preliminary data, and the U.K. unemployment rate climbing to 4.5% in August, higher than expected.

Also weighing was the news late Monday that Johnson & Johnson (NYSE:JNJ) paused its Covid-19 vaccine candidate clinical trials due to an unexplained illness in a study participant.

J&J's move follows a similar one by AstraZeneca (NYSE:AZN), which paused late-stage trials of its experimental coronavirus vaccine, developed with the University of Oxford, in September. Although clinical trials have resumed in the U.K. and a number of other countries, AstraZeneca's trials have yet to resume in the U.S.

This news resonates as a number of European countries have posted record increases of Covid-19 cases in recent days. Authorities have been wary of reviving stringent national lockdowns, opting instead for localized measures such as those imposed in parts of the U.K. on Monday.

Wall Street closed with strong gains Monday amid confidence that a clear-cut election victory for Democratic candidate Joe Biden - implicit in most of the recent polls -  will pave the way for a comprehensive recovery package in January. .

In corporate news, Roche (SIX:RO) may be in the spotlight after announcing Tuesday plans to launch a high-volume antigen test to diagnose coronavirus infections.

Additionally, Nestle's (SIX:NESN) $2 billion offer to gain full ownership of Aimmune Therapeutics (NASDAQ:AIMT) has been approved by Aimmune’s shareholders, providing Nestle with the first U.S.-approved peanut allergy treatment.

Oil prices pushed higher Tuesday, recovering after losses of just under 3% during the previous session, but excess output continues to plague the market along with ever-rising Covid-19 numbers hurting global demand.

A slow economic recovery from the pandemic threatens to delay a full rebound in world energy demand to 2025, the International Energy Agency said on Tuesday.

U.S. crude futures traded 0.9% higher at $39.80 a barrel, while the international benchmark Brent contract rose 0.9% to $42.11.

Elsewhere, gold futures fell 0.5% to $1,919.50/oz, while EUR/USD traded 0.1% lower at 1.1796.

Latest comments

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.