European Shares Set To Open Higher Amid Stimulus Hopes

stockmarkets jan11 19nov21 lt

European stocks may open higher on Friday after China's Securities Daily mentioned that China is likely to introduce more tax and fee reductions that could amount to more than 500 billion yuan ($78.31 billion) in proper time.

Elsewhere, Japanese Prime Minister Fumio Kishida announced a record $490 billion stimulus for the world's third-largest economy as he looks to shore up the country's patchy pandemic recovery.

On the Covid-19 front, Germany is set to introduce tighter curbs on people who have not been vaccinated against Covid-19 after the country reported its highest single-day surge in infections.

Chancellor Angela Merkel said the "dramatic" situation was the result of the fourth wave "hitting our country with full force."

Elsewhere, U.S. President Joe Biden said Thursday that the United States was weighing a diplomatic boycott of next year's Winter Olympics in Beijing over China's human rights abuses.

Asian markets traded mixed, with Hong Kong's Hang Seng losing more than 1 percent as disappointing earnings from Chinese e-commerce giant Alibaba Group Holdings heightened worries about Beijing's broad regulatory crackdown and slowing growth in the world's second-biggest economy.

The dollar strengthened and Treasury yields firmed up despite mixed comments from Fed policymakers.

Gold prices inched higher but were set for their first weekly decline in three. Oil extended overnight gains despite talk of a coordinated strategic reserve release and concerns that new COVID-related restrictions would hurt demand.

It's a relatively quiet day ahead on the Eurozone's economic calendar, with German wholesale inflation figures for October likely to draw interest.

On the monetary policy front, ECB President Lagarde and FOMC member Waller are scheduled to speak later in the day.

U.S. stocks fluctuated before closing mixed overnight as concerns over inflation and supply chain problems offset latest economic data painting a positive picture of the world's largest economy.

The tech-heavy Nasdaq Composite rose half a percent and the S&P 500 edged up 0.3 percent to reach new record closing highs while the Dow slipped 0.2 percent.

European stocks closed Thursday's session on a subdued note as traders grappled with seasonal Covid-19 worries and ongoing inflation concerns.

The pan European Stoxx 600 gave up half a percent. The German DAX and France's CAC 40 index both dipped around 0.2 percent while the U.K.'s FTSE 100 shed half a percent.

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