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European Shares Seen Up On Recovery Hopes

marketopen 011519 06jul20 lt

European stocks are seen opening higher on Monday as positive data surprises and encouraging preliminary data for some vaccine candidates boosted hopes the global economy will bounce back from an expected recession this year.

Lockdown restrictions continue to ease in Europe, with England embarking on perhaps its biggest lockdown easing yet as pubs and hairdressers reopen for the first time since late March.

Starting July 1, the European Union opened its borders to travelers from some third countries where the coronavirus outbreak is considered to be under control.

Asian markets rose despite some American states reporting record new coronavirus infections and U.S. President Donald Trump blaming China's 'secrecy, cover-up' for spread of Covid-19.

The overall number of global Covid-19 cases has increased to more than 11.4 million, while the deaths have soared to over 533,000.

The World Health Organization reported a one-day high in global coronavirus infections over the weekend.

Officials in Texas, California and Arizona rolled back their reopening plans after a surge in new cases. Brazil and India are also seeing worryingly large rises.

A late surge in the coronavirus infections has forced Australia to seal off the state of Victoria from the rest of the country from midnight Tuesday.

Iran recorded its highest number of deaths from Covid-19 within a 24-hour period. Spain, South Africa and Japan have also seen an uptick in new virus cases.

The dollar held steady against major currencies after Trump stated his support for a second coronavirus Economic Impact Payment, more commonly known as a stimulus check in the next coronavirus relief package.

Gold was unchanged while oil prices traded mixed in Asian deals on concerns that a spike in coronavirus cases could curb oil demand in the United States.

Factory orders data from Germany and retail sales numbers from euro area are due later in the session, headlining a busy day for the European economic news.

German factory orders are forecast to climb 15 percent month on month in May, in contrast to a 25.8 percent decline posted in April.

Eurozone retail sales are forecast to rise 15 percent on a monthly basis in May, reversing an 11.7 percent drop in April.

Eurozone Sentix investor confidence survey data for July is also due. The sentiment index is expected to improve to -10.9 from -24.8 percent in June.

U.S. markets were closed on Friday for the Independence Day holiday.

European markets ended Friday's session lower as investors mulled a political upheaval in France as well as reports of conflict among policymakers over a stimulus package for the single-currency region.

The pan European Stoxx 600 shed 0.8 percent. The German DAX dropped 0.6 percent, France's CAC 40 index declined 0.8 percent and the U.K.'s FTSE 100 gave up 1.3 percent.

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