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European Shares Seeking Rebound After Selloff

stockmarkets dec12 16oct20 lt

European stocks are seen opening a tad higher on Friday after steep losses in the previous session amid fears that Europe is running out of time to control a resurgence of the coronavirus.

The focus has now shifted to Canada-China relations after Canada ordered a national security review of Shandong Gold Mining Co Ltd's bid to acquire a gold mine in the Canadian Arctic.

Asian markets remain broadly lower as risk sentiment soured amid renewed concerns over rising virus cases, stalled Covid-19 vaccine trails and a lack of progress towards a U.S. fiscal stimulus deal.

U.S. Senate Majority Leader Mitch McConnell rejected the push for higher coronavirus stimulus deal, hours after President Trump told FOX Business he was willing to raise his spending offer above the White House's current $1.8 trillion proposal.

London will enter a tighter Covid-19 lockdown from midnight on Friday, while a nighttime curfew will take effect in some French cities starting Saturday.

The slow progress of Brexit trade talks also dampened investor sentiment. U.K.'s chief Brexit negotiator David Frost said on Thursday he was "surprised" and "disappointed" by the European Union's position during negotiations in Brussels.

EU chief negotiator Michel Barnier told reporters that there were "prospects" of a deal but he could not say that "we'll necessarily get a deal."

The dollar headed for its best week of the month while gold remained on track to snap two straight weeks of gains. Oil prices fell on concerns that major producers will move ahead with plans to ease their supply cuts.

Final consumer prices and foreign trade figures data from euro area are due later in the session, headlining a light day for the European economic news.

Across the Atlantic, trading may be impacted by reports on retail sales, industrial production and consumer sentiment.

U.S. stocks edged lower overnight after data showed new applications for unemployment benefits unexpectedly jumped last week, adding to concerns surrounding fresh coronavirus restrictions in Europe, uncertainty surrounding the upcoming elections and deadlocked stimulus talks.

The Dow Jones Industrial Average plunged more than 330 points before recovering much of the lost ground to end the session down just 0.1 percent after U.S. Treasury Secretary Steven Mnuchin said he will keep trying to reach a deal on coronavirus relief.

The tech-heavy Nasdaq Composite shed half a percent and the S&P 500 eased 0.2 percent.

European stocks slumped on Thursday amid signs that the spread of coronavirus is gathering pace.

The pan European Stoxx 600 plunged 2.1 percent. The German DAX tumbled 2.5 percent, France's CAC 40 index lost 2.1 percent and the U.K.'s FTSE 100 gave up 1.7 percent.

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