Markets look to economic recovery and vaccine hopes

European markets are set for a bounce on Monday morning as investors focus on the prospect of economic recovery and progress on potential coronavirus drugs, shrugging off concerns about a further acceleration of the pandemic.

Britain’s FTSE 100 is seen around 86 points higher at 6,243, Germany’s DAX is expected to jump by around 252 points to 12,780 and France’s CAC 40 is set to climb by around 98 points to 5,105, according to IG data.

Stocks in Europe look set to follow the trend set in Asia overnight as mainland Chinese stocks rallied on bullish sentiment, with the Shanghai composite surging more than 4% to lead gains.

The European Commission said Friday that conditional approval had been granted for Gilead’s antiviral drug remdesivir to be used in the EU, making it the first authorized treatment for the virus in the region. The Sunday Times newspaper then reported that the

Read More

European markets have vaccine hopes

European stocks are expected to open higher Thursday as global markets get a boost from news surrounding the development of a potential coronavirus vaccine.

London’s FTSE is seen opening 49 points higher at 6,203, Germany’s DAX is seen 120 points higher at 12,362, France’s CAC 40 is seen 51 points higher at 4,971 and Italy’s FTSE MIB is seen 190 points higher at 19,405, according to IG.

European stocks look set to track global markets higher, with investor sentiment getting a boost from news that a vaccine candidate being developed by Pfizer and BioNTech shows potential. An early-stage human trial of one of four potential coronavirus vaccines it’s developing showed the drug created neutralizing antibodies. The results, which were posted online, have yet to be reviewed by a medical journal.

Stocks in Asia Pacific rose during Thursday’s trading session were boosted by the news, yet investors in the region are

Read More

European markets head for broadly positive open after China data boost

European stocks are expected to open in flat to positive territory Wednesday, getting a boost from better-than-expected Chinese factory activity in June.

London’s FTSE is seen opening 5 points lower at 6,179 while Germany’s DAX is expected to open 22 points higher at 12,354, France’s CAC 40 is seen 9 points higher at 4,951 and Italy’s FTSE MIB is seen 72 points higher at 19,327, according to IG.

Market participants in Europe will be digesting the latest indication of an economic recovery in China Wednesday after a private survey showed Chinese manufacturing activity in June growing more than expected. 

The Caixin/Markit manufacturing Purchasing Manager’s Index (PMI) came in at 51.2 in June, above expectations of a reading of 50.5 by analysts in a Reuters poll. Stocks in Asia Pacific mostly edged higher in Wednesday afternoon trade. 

PMI readings above the 50-level signify expansion on a monthly basis, while those below

Read More

Forex markets: Dollar in focus

U.S. one-hundred dollar banknotes are arranged for a photograph in Hong Kong on April 15, 2019.

Paul Yeung | Bloomberg | Getty Images

The dollar held gains against the yen on Wednesday ahead of data expected to show U.S. manufacturing activity and hiring continued to recover from the economic shock caused by the coronavirus pandemic.

The euro was hemmed into a narrow range as traders awaited data on Germany’s manufacturing sector, retail sales, and the jobless rate to gauge the health of the eurozone economy.

A surge in coronavirus infections in the U.S. south and southwest has worried some market participants, but most investors are betting this will not be enough to derail a broader rebound in the global economy.

“The dollar will be supported against the yen if U.S. economic data are positive, but U.S. yields are not rising much because of speculation about yield curve control,” said Shusuke

Read More