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

Stocks - Europe Seen Lower; More Stimulus Sought

Published 07/10/2020, 02:10 AM
Updated 07/10/2020, 02:10 AM
© Reuters.

© Reuters.

By Peter Nurse 

Investing.com - European stock markets are set to open lower Friday, with investors looking for more fiscal stimulus amid worries the global economic recovery might fade as coronavirus cases increase.

At 2:10 AM ET (0610 GMT), the DAX futures contract in Germany traded 0.8% lower. CAC 40 futures in France were down 0.3%, while the FTSE 100 futures contract in the U.K. fell 0.4%.

Finance ministers from the euro area met virtually Thursday, resulting in Ireland's Finance Minister Paschal Donohoe being elected as the Eurogroup’s new chair. However, there has been disappointment that little fresh emerged about the proposed 750 billion euro recovery fund for economies hit hardest by Covid-19.

The markets will now have to wait for the get together of the European Union leaders, on July 17-18, for any further news about the fund, potentially a groundbreaking program funded by joint debt. 

There remain fundamental disagreements over key aspects, meaning the plan could still be watered down or fail.

The European Central Bank is also scheduled to meet next week, but little new is expected after the June meeting increased the size of its Pandemic Emergency Purchase Program.

“They have deserved it. After all the excitement since March, next week’s meeting should give the ECB some time to reflect and take stock. It will not be the moment to decide on any new action,” said analysts at ING, in a research note.

Meanwhile, worries are mounting that the resurgence in coronavirus cases, particularly in the U.S., could derail an economic recovery.

There were more than 60,500 new Covid-19 infections reported across the United States on Thursday, the second straight day that new cases have topped 60,000.. 

Earlier this week the European Commission stressed the euro-zone economy is still on course for its biggest contraction ever, down 8.7% this year - a forecast predicated on the assumption there wasn’t a second wave of infections causing more lockdowns. 

Oil prices weakened Friday, heading for a weekly decline after the steep losses seen during the previous session, amid worries the nascent economic recovery in the U.S., and elsewhere, is being quashed as Covid-19 infections rise and cities shut back down.

Oil inventories also remain bloated, with the U.S. crude oil stocks rising by nearly 6 million barrels last week.

At 2:10 AM ET, U.S. crude futures traded 1.6% lower at $39 a barrel, on track for a weekly loss of around 3%. The international benchmark Brent contract fell 1.3% to $41.81, set to drop around 2%.

Elsewhere, gold futures fell 0.2% to $1,801.15/oz, while EUR/USD traded at 1.1269, down 0.1%.

 

 

Latest comments

3rd world country with people like this⬇️🔽
99% of people are asymptomatic and simply become immune, but they want to push a vaccine that is under 40% effective and costs $2000/dose on the entire population
so nearly every elderly person who went into the hospital for the first part of the year was labeled as dying from COVID-1984 (and particularly all the elderly people in NY cumono shoved into crowded nursing homes), now that they are testing everybody magically the death rate drops of significantly and people are dying from other things again like strokes and heart attacks (which magically seems to have disappeared the first part of the year)
that’s right: you die from this new flu or you don’t die at all, cancer is automatically cured btw
Stop with the bailouts already. Is it not enough that markets have exceeded all time highs during a depression? This will cause violent social uprising.
The markets? Only china and Nasdaq and those rises are totally justified. Dow jones and Dax and almost any other market have been creeping around for the past few weeks.
It's Peter Nurse again, the one who wrote an article about dow jones up 10 points.. LOL
gover.nments close down busine.sses (except, of course, large glob.alist corporatio.ns like Wal.m.art), we find out that lo.ckdowns had no meaningful impact com.paring counties that had lock.downs compared to those who didnt, fed prints many trillions of dollars to save the stock market. ta.x payers pick up the tab for stu.pid.ity and fearmo.ngering by polit.icians and media.... now the ma.rket keeps wanting trillions more as the rich st.eal from the p.oor
What you say is not correct. See the statistics for Sweden versus other Scandinavian countries.
it is actually correct. in fact, many countries without lockdowns actually had lower per capita rates than countries with aggressive lockdowns. nothing that has been done has been shown to have any significant difference in terms of ultimate outcomes
Current numbers brought by amount of testing. With the same amiunt in March - we’d much bigger numbers sevral months ago
governments close down businesses (except, of course, large globalist corporations like Walmart), we find out that lockdowns had no meaningful impact comparing counties that had lockdowns compared to those who didnt, fed prints many trillions of dollars to save the stock market. tax payers pick up the tab for stupidity and fearmongering by politicians and media.... now the market keeps wanting trillions more as the rich steal from the poor
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.