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European Shares Set To Open On Cautious Note

stockmarkets jan23 17nov20 lt

European stocks are seen opening a tad lower on Tuesday, with a return of coronavirus restrictions in some U.S. states and the uncertainty surrounding U.S. President-elect Joe Biden's approach to the pandemic and U.S.-China policy likely to keep underlying sentiment cautious.

Biden on Monday warned of dire consequences if the Trump administration continues to resist cooperation with his transition team on the coronavirus pandemic and block briefings on national security, policy issues and vaccine plan.

Asian markets eked out modest gains while the British pound edged higher on reports the U.K. could reach a post-Brexit trade agreement with the European Union by early next week.

Gold edged higher as investors weighed concerns over spiking coronavirus cases globally against positive Covid-19 vaccine developments. Oil extended overnight gains on hopes about OPEC and allies continuing to curb output.

U.S. stocks rose overnight after Moderna declared an effective vaccine in tests in yet another breakthrough in the fight against coronavirus.

The Dow Jones Industrial Average rallied 1.6 percent and the S&P 500 climbed 1.2 percent to reach fresh record closing highs, while the tech-heavy Nasdaq Composite gained 0.8 percent.

European markets rose on Monday to extend last week's rally, thanks to vaccine hopes, signs of progress in Brexit negotiations and strong economic data from China and Japan.

The pan European Stoxx 600 jumped 1.2 percent. The German DAX rose half a percent, while France's CAC 40 index and the U.K.'s FTSE 100 gained around 1.7 percent each.

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