European markets open lower as coronavirus, U.S. stimulus deadline stay in focus

  • The course of the coronavirus pandemic is at the forefront of investors’ minds as the number of daily new infections reached a record high in Europe Monday, according to Reuters.
  • Investors are also keeping an eye on U.S. politics. U.S. stock futures rose in early Tuesday morning trade ahead of a deadline for a new fiscal stimulus deal from Washington.

LONDON — European stocks opened lower on Tuesday morning, as concerns about the coronavirus in Europe, and a deadline for U.S. fiscal stimulus to be agreed, weigh on market sentiment.

The pan-European Stoxx 600 was down around 0.15% shortly after the opening bell, with most sectors and major bourses in negative territory.

 

The course of the coronavirus pandemic is at the forefront of investors’ minds as the number of daily new infections reached a record high in Europe Monday, according to Reuters.

Investors are also keeping an eye on U.S. politics. U.S. stock futures rose in early Tuesday morning trade ahead of a deadline for a new fiscal stimulus deal from Washington.

Futures contracts for the Dow Jones Industrial Average gained 79 points, while those for the S&P 500 and Nasdaq 100 also traded in mildly positive territory.

The move in futures comes after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin “continued to narrow their differences” in a Monday afternoon phone call to discuss another stimulus package, according to Pelosi’s spokesman Drew Hammill. The speaker said that Tuesday is the deadline to reach an agreement before the Nov. 3 election.

Meanwhile, stocks in major Asia-Pacific markets were mixed in Tuesday trade as investors reacted to the October fixing of China’s benchmark lending rate.

 

In European earnings, UBS reported a net income of $2.1 billion for the third quarter on Tuesday, up 99% from the same period last year.

Analysts had forecast reported net income of $1.5 billion for the quarter, according to data from Refinitiv Eikon. Last year, the bank reported a net income of $1.049 billion for the same period.

Other earnings come from Tele2, Danone, Vivendi, Remy Cointreau, Swedbank and Volvo Group as well as Reckitt Benckiser and Bellway. Euro zone current account data for August is due, and German producer prices for September.

 

Source: CNBC