Home Broker News European Stocks Slip; China’s Economy Recovers

European Stocks Slip; China’s Economy Recovers

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European stock markets were seen downtrending, given COVID-19 related concerns; China’s healthy-looking economic situation ceased to support the EU market. 

Although the COVID-19 case growth is still massive, the virus doesn’t stop investors. The U.S. S&P 500 and NASDAQ kept trading in high territory, reaching 70.9% and 92.4%, respectively, from their March 23, 2020 lows. 

European stock futures were seen trading lower. The DAX futures contract in Germany decreased 0.3%, CAC 40 futures in France dropped 0.6% and the FTSE 100 futures contract in the U.K. lost 0.1%.

China stated that its economy added 2.3% last year, as its gross domestic product increased by 6.5% in the 4th quarter from a year ago, supported by retail sales growing 4.6% in the final quarter.

China locked down over 29 million people to restrict the virus spread. Amsterdam citizens tried to prevent the latest lockdown restrictions; thus thousands of people held illegal protests and were stopped by the police. 

In the U.S., the growth of the COVID-19 cases has affected consumer spending.

Investors will also be keeping an eye on the political changes in Washington, as there are worries related to potential violence at Joe Biden’s inauguration that is going to take place on Wednesday. Traders will also be looking forward to the Congress’s decision regarding the $1.9 trillion stimulus plan proposed by Biden.

In Europe, AstraZeneca (NASDAQ:AZN) will be unders investors’ radar as the company received U.S. consent for its gastric cancer drug.

Oil prices decreased amid growing Covid-19 cases, specifically in China.

U.S. crude futures lost 0.4% and traded at $52.20 per barrel, while the international benchmark Brent contract decreased 0.4% and traded at $54.86. Thus, both benchmarks lost more than 2%.

Gold futures added 0.3% and traded at $1,836.05/oz, while EUR/USD grew 0.1%, trading at 1.2084.

 

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