logo
Plus   Neg
Share
Email

European Shares Seen Up On Recovery Hopes

stockmarkets jan17 08jan21 lt

European stocks are likely to open on a positive note Friday as investors look beyond rising coronavirus cases and U.S.-China tensions to focus on hopes for an economic recovery from the pandemic.

Asian markets surged to record highs despite the delisting of major Chinese telecoms firms from FTSE Russell and MSCI indexes and reports suggesting the Trump administration was considering banning U.S. entities from investing in an expanded list of Chinese companies.

Secretary of State Mike Pompeo said the U.S. will consider sanctions against officials involved in the arrest of 53 people in Hong Kong, drawing anger and threat of retaliation from Beijing.

On the vaccine front, nearly 4,400 adverse events were reported after people received the Pfizer-BioNTech Covid-19 vaccine in the United States.

Brazil said that the vaccine made by Beijing-based Sinovac was effective, bolstering the chances of approval for a second Chinese inoculation that could be rolled out in much of the developing world.

Focus now turns to the U.S. Labor Department's closely-watched monthly employment report due tonight, with economists expecting employment to rise by 71,000 jobs in December after an increase of 245,000 jobs in November. The unemployment rate is expected to inch up to 6.8 percent from 6.7 percent.

U.S. stocks climbed toward record highs overnight as the Capitol building was finally secured and lawmakers certified President-elect Joe Biden's victory, giving Democrats control of the House, Senate and the White House.

Encouraging jobless claims and service sector activity data also buoyed sentiment.

The tech-heavy Nasdaq Composite jumped as much as 2.6 percent, while the S&P 500 rallied 1.5 percent and the Dow Jones Industrial Average rose 0.7 percent.

European stocks rose on Thursday on optimism that a Democratic-controlled government in the U.S. will lead to additional stimulus.

The pan European Stoxx 600 added half a percent. The German DAX rose 0.6 percent and France's CAC 40 index gained 0.7 percent ahead of the rollout of Moderna vaccine in the European Union nations.

The U.K.'s FTSE 100 inched up 0.2 percent amid speculation that the Bank of England is moving toward negative interest rates.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT