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Stocks - Europe Seen Higher; Recovery Confidence Trumps Virus Concerns

Stock MarketsJul 06, 2020 02:11AM ET
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© Reuters.

By Peter Nurse 

Investing.com - European stock markets are set to open higher Monday amid hopes of a global economic recovery aided by more stimulus, but concerns remain over the increasing number of new coronavirus cases.

At 2:05 AM ET (0605 GMT), the DAX futures contract in Germany traded 1.4% higher. CAC 40 futures in France were up 1.9%, while the FTSE 100 futures contract in the U.K. rose 1%.

Economic data of late has tended to point to a reasonably prompt economic recovery around the world. The U.S. recorded last week the addition of 4.8 million jobs in June, much more than expected, while PMI data in China and throughout Europe has tended to suggest renewed confidence of a brisk pickup in activity.

Additionally, the U.S. Congress is set to resume talks on the next stimulus bill later this month, while Germany, Europe’s economic powerhouse, will be keen to cement the structure of a Covid-19 recovery fund as it now has the six-month rotating presidency of the European Union.

A meeting of euro area finance ministers on Thursday could be telling before a looming July 17-18 summit - crucial to securing agreement on a recovery fund.

The likely need for additional stimulus grows as the number of Covid-19 cases shows no signs of slowing down. The World Health Organization reported the highest number of cases over a 24-hour period, with the U.S. reporting a spike in cases over the long holiday weekend.

Turning back to Europe, Swiss manufacturer Geberit (SIX:GEBN)said Monday that its sales fell 9.8% in the first half of the year due to the impact of the coronavirus pandemic.

German factory orders continued the recent data trend of suggesting a recovery, jumping 10.4% in May, admittedly slightly below estimates, after falling by a revised 26.2% the previous month.

Later in the session, the June construction PMI release from the U.K. will be studied, as will eurozone retail sales for May.

Oil prices traded in a mixed fashion Monday, as the continued growth of new coronavirus cases in the U.S. weighed on the American benchmark, WTI futures, while the global benchmark Brent futures posted small gains on falling supply.

Coronavirus cases in the U.S. increased by almost 56,000 on Sunday, according to Johns Hopkins University. raising concerns that this jump could hit oil demand in the United States.

Elsewhere, production by the Organization of the Petroleum Exporting Countries and allies, including Russia, has fallen to its lowest in decades, as the group cuts output by a record 9.7 million barrels per day for a third month in July. 

At 2:05 AM ET, U.S. crude futures traded 0.2% lower at $40.58 a barrel. The international benchmark Brent contract rose 0.9% to $43.19.

Elsewhere, gold futures fell 0.4% to $1,782.95/oz, while EUR/USD traded at 1.1290, up 0.4% on the day.

 

Stocks - Europe Seen Higher; Recovery Confidence Trumps Virus Concerns
 

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Comments (4)
James Hilton
James Hilton Jul 06, 2020 5:39AM ET
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Lulz stonks
Anthony Ainge
saer1212 Jul 06, 2020 5:25AM ET
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The Chinese Communist Government had Wuhan citizens in lockdown. Subsequently, the C.C.G. allowed the people of Wuhan to travel to Europe and the United States, BUT they were NOT allowed to travel to Beijing. Human Life is a gift and the CCG could care LESS if Europe and the United States had human beings die! They did care that all countries should be on a level playing ground with China. They also LIED which finally came out in Congressional hearings last week in telling the W.H.O that the virus could NOT be transferred from person to person. Don't do what China wishes which is have libs and Repubs. fighting to take the heat off of the Chinese. Does anyone know or care the Chinese are responsible for a WORLD wide epidemic?
pdyuy veagx
pdyuy veagx Jul 06, 2020 3:49AM ET
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There is no confidence About Trumps statements. Then why the this headline?
Jacob Steinschlag
Jacob Steinschlag Jul 06, 2020 3:49AM ET
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The author meant "trumps" as a verb, not as a name :))
Paul Dunne
Paul Dunne Jul 06, 2020 3:49AM ET
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Trump is a verb in the headline; it doesn't refer to the president.
Alan Kaid
umadbro Jul 06, 2020 3:49AM ET
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The article does not directly reference Trump. The word "trumps" in the headline is the verb, referring to investors' optimism to focus on recovery instead of new virus concerns.
eddie glass
eddie glass Jul 06, 2020 3:24AM ET
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the only people concerned about the virus are democrats who are upset people are no longer dying or falling for the fearmongering
 
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