European Shares Seen Opening On Firm Note


European stocks are seen opening higher on Monday as investors react to reports that Japan is looking to lift a state of emergency for Tokyo and remaining areas and also considering fresh stimulus worth almost $1 trillion to help companies ride out the coronavirus pandemic.

U.S. markets are closed today for Memorial Day holiday, while the U.K. is shut for the Spring bank holiday.

Asian markets are moving higher, even as Hong Kong shares extended losses after the city was rocked by protests at the weekend over a controversial proposed security law.

The dollar edged higher and oil prices fell after the U.S. Commerce Department added as many as 33 Chinese companies and other institutions to a blacklist for human rights violations and to address U.S. national security concerns involving weapons of mass destruction and other military activities.

On Sunday, China’s foreign minister said the U.S. was pushing relations between the two to “the brink of a new Cold War”.

Meanwhile, Greece, Germany and the Czech Republic are preparing to allow bars and restaurants to begin serving again. Primary schools in parts of England are set to reopen from Jun 1.

Elsewhere, the United States has banned flights from Brazil as the Latin American country sees deaths and infections spiral.

In economic news, business sentiment and revised quarterly national accounts data from Germany are due later in the session, headlining a light day for the European economic news.

U.S. stocks ended mixed on Friday as rising U.S.-China tensions amid fresh turmoil in Hong Kong kept investors nervous ahead of a three-day weekend.

The Dow Jones Industrial Average edged down marginally, while the tech-heavy Nasdaq Composite rose 0.4 percent and the S&P 500 added 0.2 percent.

European markets also turned in a mixed performance on Friday as the minutes of the European Central Bank’s April meeting showed the bank was “fully prepared” to add stimulus again next month, in an attempt to support the economy amid the coronavirus pandemic.

The pan European Stoxx 600 ended flat with a negative bias. The German DAX inched up 0.1 percent, while France’s CAC 40 index finished marginally lower and the U.K.’s FTSE 100 dropped 0.4 percent.

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2020-05-25 01:45:17

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