European Shares Likely To Open On Mixed Note

stockmarkets dec21 19oct20

European stocks are seen opening on a mixed note Monday after seeing strong gains on Friday.

Underlying sentiment may remain supported somewhat on optimism about some progress on U.S. stimulus talks and expectations of a coronavirus vaccine by year-end.

Asian markets remain broadly higher after data showed China's GDP expanded an annual 4.9 percent in the third quarter, reinforcing expectations of a V-shaped recovery from the coronavirus pandemic.

Chinese shares, however, edged lower as marked improvement in consumer spending and industrial output doused the chances for major stimulus measures.

On the U.S. stimulus front, House Speaker Nancy Pelosi said on Sunday differences remain with President Donald Trump's administration on a wide-ranging coronavirus relief package but she was optimistic legislation could be pushed before the Nov.3 election.

A firmer dollar held back gold near the $1,900 per ounce psychological level, while oil prices declined after the Chinese GDP numbers came in slightly below expectations.

U.S. stocks fluctuated before ending mixed on Friday as upbeat retail sales and consumer sentiment data offset concerns over a surge in new coronavirus infections in Europe, the Americas and parts of Asia.

The Dow Jones Industrial Average edged up 0.4 percent and the S&P 500 inched up marginally while the tech-heavy Nasdaq Composite dropped 0.4 percent.

European markets rebounded on Friday as investors reacted to encouraging earnings results from the likes of LVMH Moët Hennessy Louis Vuitton and Daimler and an announcement from Pfizer that it could file in late November for U.S. authorization of a Covid-19 vaccine.

The pan European Stoxx 600 gained 1.3 percent. The German DAX climbed 1.6 percent, France's CAC 40 index rose 2 percent and the U.K.'s FTSE 100 advanced 1.5 percent.

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