European Shares Look Set For Mixed Start

European Shares Look Set For Mixed Start

April 13, 2021

European stocks are seen opening on a mixed note Wednesday amid concerns that the global economic recovery still remains fragile and uneven.

Today’s G20 meeting is expected to focus on climate action and would reaffirm the need not to ease stimulus measures too soon.

In its World Economic Outlook – released at the start of the IMF’s and World Bank’s spring meetings – the International Monetary Fund warned that an uneven rollout of vaccines posed a threat to the recovery.

U.S. President Joe Biden announced in a White House speech that he is moving up the deadline for all over 18s to be eligible for vaccines to April 19, two weeks prior to the original May 1 deadline.

Meanwhile, the benefits of the AstraZeneca Covid-19 vaccine are still “largely positive” and outweigh risk of rare but serious blood clots, the World Health Organization said during a regular press briefing in Geneva.

Asian markets remain broadly higher, though Chinese and Hong Kong markets slipped on worries of policy tightening.

The dollar held steady after hitting a two-week low in the previous session. Gold prices fell from a two-week high while oil prices rose after reports suggested that crude oil stockpiles fell in the most recent week.

Composite Purchasing Managers’ survey results from euro area and the U.K. are due later in the session, headlining a light day for the European economic news.

The Federal Reserve is scheduled to release the minutes of its latest monetary policy meeting later today, potentially shedding additional light on the outlook for interest rates.

U.S. stocks fluctuated before ending slightly lower overnight as new trades linked to Archegos added unease to markets amid a quiet day on the economic front.

The Dow dropped 0.3 percent, while the tech-heavy Nasdaq Composite index and the S&P 500 both ended marginally lower.

European stocks ended Tuesday’s session on a firm note after the IMF upgraded its 2021 global growth forecast for this year and next, citing the accelerating rollout of Covid-19 vaccine and aggressive stimulus spending by the U.S. and other rich nations.

The pan European Stoxx 600 advanced 0.7 percent. The German DAX rose 0.7 percent, France’s CAC 40 index gained half a percent and the U.K.’s FTSE 100 climbed 1.3 percent.

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