European Shares Set To Open On Firm Note

us premarket 010219 17feb20

European stocks may open higher on Monday after China's central bank pumped 100 billion yuan (about 14.33 billion U.S. dollars) into the financial system today through reverse repos in a bid to improve liquidity in the system

The central bank also injected 200 billion yuan into the market via medium-term lending facility as China continues to battle the outbreak of the deadly Coronavirus.

China's Finance Minister has unveiled plans to roll out targeted and phased tax and fee cuts to help relieve difficulties for businesses.

The number of fatalities due to the deadly coronavirus outbreak in China has reached 1,770, while the number of people infected with the virus passed 70,000.

Asian markets are trading mixed as expectations of further policy stimulus were offset by weak data from Japan showing that the economy shrank at the fastest pace in six years in the December quarter.

Singapore cut its 2020 growth and exports forecasts due to the new coronavirus outbreak. Trading remains light across the Asia-Pacific region amid a public holiday in the United States.

Gold hovered near a two-week high and the U.S. dollar changed hands around the 109.77-yen level while oil eased after the biggest weekly gain since September on expectations of OPEC cutting oil supply further.

U.S. stocks ended narrowly mixed on Friday but posted weekly gains as concerns over the coronavirus impact eased.

The Dow Jones Industrial Average slid 0.1 percent, while the S&P 500 and the Nasdaq Composite edged up around 0.2 percent after the release of a mixed batch of retail sales, industrial production and consumer sentiment data.

European markets also ended mixed on Friday after Germany reported weak growth data. The pan European Stoxx 600 eased 0.1 percent.

The German DAX ended on a flat note with negative bias, while France's CAC 40 index shed 0.4 percent and the U.K.'s FTSE 100 declined 0.6 percent.

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