European markets react as U.S. coronavirus cases surge

European stocks are expected to open lower Monday as investors react to a surge in coronavirus cases in the States, and growing concerns over a rise in infections in Germany.

London’s FTSE is seen opening 34 points lower at 6,253, Germany’s DAX is seen 124 points lower at 12,223, France’s CAC 40 is expected to open 49 points lower at 4,936 and Italy’s FTSE MIB is seen opening 104 points lower at 19,331, according to IG.

International investors are keeping a close eye on coronavirus developments following the news that cases are increasing rapidly in the U.S. The U.S reported more than 30,000 new coronavirus cases on Friday and Saturday, the highest daily totals since May 1, according to data compiled by Johns Hopkins University, with new cases are rising in states across the South, West and Midwest.

Seven states hit record cases on Saturday, including Florida and South Carolina, which had their third consecutive day breaking single-day records. Nonetheless, U.S. stock futures rose early Monday morning following a solid weekly performance on Wall Street amid continuing concerns about the coronavirus outbreak. 

Dow Jones Industrial Average futures were 102 points higher. S&P 500 and Nasdaq-100 futures were also trading in positive territory. Stocks in Asia also nudged higher in Monday afternoon trade; China kept its benchmark lending rate unchanged on Monday, with the 1-year loan prime rate left at 3.85%.

Meanwhile in Europe, Germany has said the coronavirus reproduction rate (an indicator of how many people a person who has the coronavirus could be expected to go on to infect, on average) jumped to 2.88 on Sunday, up from 1.79 a day earlier, the Robert Koch Institute for public health said, Reuters reported. Experts have aimed to keep the reproduction rate below one in order to contain the outbreak.

There are no major earnings in Europe Monday, but data releases include euro zone preliminary consumer confidence data for June. 

– CNBC’s Fred Imbert and Emma Newburger contributed to this report.

Source Article