European stocks are expected to open higher on Tuesday, tracking positive global market sentiment as optimism grows that a coronavirus vaccine can be found.
London’s FTSE is seen opening 20 points higher at 6,104, Germany’s DAX is expected to open 87 points higher at 11,453, France’s CAC 40 is seen opening 32 points higher at 4,559 and Italy’s FTSE MIB 101 points higher at 17,654, according to IG.
European stocks look set to follow the positive trend set in Asia, where stocks jumped on Tuesday afternoon after American biotech firm Novavax said Monday it started the first human study of its experimental coronavirus vaccine.
The firm said it expects initial results on safety and immune responses in July. That comes on the back of Moderna’s recent report of a positive development in its vaccine trial where all 45 participants had developed coronavirus antibodies.
U.S. stock futures rose on hopes of a vaccine Tuesday. It comes as the number of coronavirus cases in the U.S. topped more than 1.6 million as deaths rose to more than 98,000, a tally from Johns Hopkins University showed as of Tuesday.
Investors are also keeping an eye on tensions between the U.S. and China, which showed signs of escalation over the weekend. White House National Security Advisor Robert O’Brien said Sunday the U.S. will likely impose sanctions on China if Beijing implements national security law that would give it greater control over autonomous Hong Kong.
There are no major earnings Tuesday. On the data front, German data on consumer sentiment in June is released.
– CNBC’s Eustance Huang and Yun Li contributed to this report.