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European Shares Seen Up Ahead Of US Jobs Data

marketopen 011519 02jul20 lt

European stocks may open a tad higher on Thursday as investors shift their focus to the June U.S. employment data due later in the day.

The report, which is expected to show another spike in employment, is likely to overshadow data on weekly jobless claims, the trade deficit and factory orders.

Asian markets advanced after a Covid-19 vaccine developed by German biotech firm BioNTech and U.S. pharmaceutical giant Pfizer showed potential and was found well tolerated in early-stage human trials.

Concerns persist about the spread of the coronavirus after the United States recorded its biggest one-day spike in coronavirus cases and California reimposed some coronavirus lockdown measures.

Meanwhile, the U.S. House of Representatives passed legislation that would penalize banks doing business with Chinese officials who implement a national security law.

The Democratic-controlled House approved a $1.5 trillion plan Wednesday to rebuild the nation's crumbling infrastructure, but President Donald Trump criticized it as "full of wasteful 'Green New Deal' initiatives."

The dollar fell and gold eased from a near eight-year high hit in the previous session, while oil prices slipped on demand fears.

Eurostat is scheduled to release euro area unemployment and producer price data later in the day. The jobless rate is expected to rise to 7.7 percent in May from 7.3 percent in April.

Eurozone producer prices are forecast to decline 4.8 percent annually, faster than the 4.5 percent drop seen in April.

U.S. stocks closed mostly higher overnight as traders weighed Coivid-19 vaccine progress against mixed economic data and a spike in national virus cases.

While private payrolls data disappointed, a measure of U.S. manufacturing activity unexpectedly expanded in June, ending three months of contraction.

The tech-heavy Nasdaq Composite index rallied 1 percent to reach a fresh record closing high and the S&P 500 gained half a percent, while the Dow Jones Industrial Average dropped 0.3 percent.

European markets ended broadly lower on Wednesday despite fairly encouraging economic data from the euro area, China and the U.S., and positive news about a potential coronavirus vaccine.

The pan European Stoxx 600 edged up 0.2 percent. The German DAX declined 0.4 percent, while France's CAC 40 index and the U.K.'s FTSE 100 both slid about 0.2 percent.

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