European Shares Set To Open On Steady Note

European Shares Set To Open On Steady Note

October 15, 2020

European stocks may open flat to slightly higher on Friday as investors await more clarity on the likelihood of a new U.S. coronavirus relief bill.

House Speaker Nancy Pelosi on Thursday said there won’t be stand-alone bill for additional airline aid without a broader coronavirus stimulus package for the country.

As talks continue against a frenzied backdrop, the Bloomberg reported that the Trump administration is open to going with something bigger.

Meanwhile, Donald Trump’s physician said that the President “has completed his course of therapy for Covid-19,” and he expects him to “return to public engagements” on Saturday.

Closer home, France has imposed tighter coronavirus restrictions in four more cities with high infection rates.

German health officials warned of an increase in the numbers, raising fears that tighter restrictions will stifle the recovery in Europe’s biggest economy.

Pubs and restaurants in hotspots in England look set to face fresh restrictions after new data suggested there is significant transmission taking place in hospitality settings.

Asian markets followed Wall Street higher, with Chinese stocks leading regional gains as an eight-day national holiday drew to a close.

China’s service sector registered a strong growth in business activity in September, signaling a further recovery from the coronavirus pandemic, survey data from IHS Markit showed.

The Caixin composite services Purchasing Managers’ Index rose to 54.8 in September from 54.0 in August, marking the fifth consecutive increase in service sector output. The expansion was underpinned by a sustained rise in total new business.

Monthly GDP estimate, industrial production and foreign trade figures are due from the U.K. later in the day, headlining a light day for the European economic news.

Gold rose on a weaker dollar while oil prices eased slightly as Hurricane Delta approached the Louisiana coast.

U.S. stocks rose overnight to reach their best closing levels in over a month as data showed the number of Americans filing new claims for jobless benefits inched down last week and president Trump said that stimulus talks with Democrats have turned productive.

The Dow Jones Industrial Average edged up 0.4 percent, the tech-heavy Nasdaq Composite gained half a percent and the S&P added 0.8 percent.

European markets hit a three-week high on Thursday amid optimism that U.S. stimulus talks are continuing.

The pan European Stoxx 600 edged up 0.8 percent. The German DAX advanced 0.9 percent, France’s CAC 40 index rose 0.6 percent and the U.K.’s FTSE 100 gained half a percent.

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