European markets react to coronavirus developments

LONDON — European stocks are expected to open higher Tuesday, bouncing back from Monday’s losses on coronavirus concerns and bank allegations.

London’s FTSE is seen opening 30 points higher at 5,826, Germany’s DAX up 101 points at 12,613, France’s CAC 40 up 36 points at 4,816 and Italy’s FTSE MIB up 125 points at 18,861, according to IG.

European shares look set to recover from Monday’s losses; the pan-European Stoxx 600 closed down by over 3.2% provisionally, with banks plunging 5.7% and travel stocks tumbling 5.2% to lead losses as all sectors and major bourses slid into negative territory.

Airline stocks in Asia-Pacific tumbled in Tuesday morning trade as coronavirus fears returned, with major stock markets also seeing declines. 

The moves came as concerns over the outlook for travel resurface, with analysts warning that European countries are likely to impose more restrictions on public life in the coming days amid a rapid rise in the number of daily coronavirus infections. The U.K. is set to reimpose some restrictions, including forcing pubs and restaurants in England to close at 10 p.m., as the country faces a second wave of infections.

More positive sentiment was seen Stateside with U.S. stock futures rising slightly in overnight trading on Monday following a steep sell-off on Wall Street Monday. Futures on the Dow Jones Industrial Average rose about 100 points. The S&P 500 futures gained 0.4% and the Nasdaq 100 futures were up 0.5%.

Shares of Tesla dropped nearly 6% in overnight trading after CEO Elon Musk said in a tweet that the electric carmaker’s “Battery Day” event would not reach “serious high-volume production” until 2022, which disappointed investors and analysts.

On the earnings front, Kingfisher releases interim results and the TUI Group releases a trading update, Manchester United report fourth-quarter and full-year results and A.G. Barr interim results. On the data front, the euro zone releases preliminary consumer confidence data for September.

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