European Markets Likely To Start the Week on a Positive Note
Investors’ take on latest financial, geopolitical and coronavirus news suggest that European markets are highly likely to set a positive stance on its weekly market starting Monday.
IG’s high open estimates for different Indices are as follows: 311 points for London’s FTSE at 6,025, 67 Points for Germans’ DAX at 12,820, 26 points for France’s CAC 40 at 4,914, and 87 points for Italy’s FTSE MIC at 19, 753.
The positive trend that European markets are setting follows a similar one established by their Asian Pacific counterparts where stocks started higher on Monday, as investors pay keen interest to developments in the COVID-19 pandemic.
China’s Shanghai composite gained 0.15% to close around 3,385.64 points while Shenzhen composite closed at 13,666.69 points after gaining 1.4%. The biggest gainer however was ChiNext at 2.251% to close at 3.028.86%.
The positivity in European markets comes a week after Europe’s economy was announced to officially be in a technical recession, following a record breaking gross domestic contraction of 20.4% Q2 2020.
Coronavirus Developments under Analysts Radar
The fate of the global economy depends largely on positive economic news from various global markets and positive developments in combating the coronavirus pandemic, whose lockdown measures have put strains on economies globally.
In the US, president Trump’s administration said that it is considering fast tracking a UK-developed experimental vaccine, according to a report by Financial Times. The vaccine is set to roll before the upcoming presidential elections in November.
The News led to a 2.5% jump in AstraZeneca Plc according to a report by Reuters. Lombard Forte’s analyst Keith Temperton, said that the weekend’s Vaccine news is critical to investors’ decisions and will influence subsequent market performance in coming weeks.
“But we’re in this mid-summer volume vacuum, where the path of least resistance is higher.”
Additionally, senior advisor to US President Kellyanne Conway stated that she will be resigning from her role in the statehouse on Monday 31 to focus on her family, with support from President Donald Trump.
“This is completely my choice and my voice. In time I will announce future plans. For now and for my beloved children, it will be less drama, more mama.”
Her husband, an adept critic of the Trump administration also announced his resignation from The Lincoln Project in a united front with his wife so that they can both focus on family.
Meanwhile, overnight trading in the US stock market recorded a slight climb on Sunday with Wall Street focused on creating a new higher record for the week.
In the previous week, the S&P 500 Index set an all-time high record only seen before the coronavirus pandemic, following a rally in major technological stocks. As the broad equity benchmark, S&P 500 closed on a new high on Friday, after registering its fourth consecutive week.
At time of press, data from CNN Business indicates sharp increase across European markets with Germany in the lead.
“The DAX is up 2.6%, while France’s CAC is up 2.36% and London’s FTSE 100 is up 1.95%.”
