European Shares To See Cautious Start

European stocks are set to drift lower at open on Wednesday after posting strong gains the previous day on optimism that the spread of the Covid-19 outbreak may be slowing.

Asian markets are trading mostly higher as the latest coronavirus numbers from the global hotspots like the U.K., the U.S. and Europe raised hopes of recovery.

Upbeat machinery orders and trade balance data from Japan and enthusiasm over government stimulus measures around the region also offered some support.

The U.N. Security Council (UNSC) holds a session on the novel coronavirus on Thursday amid rising questions over its credibility at times of crisis like the coronavirus pandemic,

U.S. President Donald Trump accused the WHO of bias toward China during the coronavirus pandemic and threatened that he was “going to put a very powerful hold on” funding to the UN body whose biggest funding source is the United States.

But soon after, Trump insisted such a freeze was only under consideration. After U.S. closing bell, the Trump administration asked Congress for an additional $250 billion in emergency economic aid for small U.S. businesses reeling from the pandemic.

Treasury Secretary Steven Mnuchin said he’d urged leaders of both parties to pass the $250 billion in the Senate by Thursday and the House by Friday.

The dollar reversed its losses ahead of the U.S. FOMC March 15 meeting’s minutes release. U.S. crude futures rose over 6 percent after falling as much as 9.4 percent overnight as the Energy Information Administration lowered its forecast for crude oil prices for the year.

Overnight, U.S. stocks ended a volatile session lower as New York and New Jersey recorded one-day highs for coronavirus deaths and President Donald Trump attacked the W.H.O. for its handling of the coronavirus outbreak.

The Dow Jones Industrial Average jumped over 900 points before giving up all gains to end the session down 0.1 percent. The tech-heavy Nasdaq Composite shed 0.3 percent and the S&P 500 dropped 0.2 percent.

European markets closed higher for a second successive session on Tuesday after Spain and Italy reported signs of improvement in the coronavirus situation and Austria and Denmark announced timelines for ending their lockdowns.

The pan European Stoxx 600 surged 1.9 percent. The German DAX spiked 2.8 percent, France’s CAC 40 index rallied 2.1 percent and the U.K.’s FTSE 100 climbed 2.2 percent.

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