LONDON – European stocks are set to open slightly higher on Tuesday, trying to recover from a brutal sell-off in the previous session, as new coronavirus strain in the UK shook investor sentiment.
Britain’s FTSE 100 is expected to open flat at 6,420, Germany’s DX is expected to rise 70 points to 13,320 and France’s CAC is expected to rise 30 points to 5,422, according to the IG’s index.
Concerns surrounding the rapid covid transformation known for the first time in Britain are likely to loosen Gains. The new variant forced the UK government to shut down backtracks on home mixing in London and other parts of south-east England and during the Christmas break.
Scientists say the type is 70% more transmissible than previous strains in the UK, it is also known in Italy, the Netherlands, Belgium, Denmark and Australia. As the deadline for the Brexit transition draws to a close, many countries around the world have closed their borders to Britain, disrupting travel and raising concerns over potential food shortages.
Meanwhile, with the December 31 deadline approaching, the UK has been embroiled in controversy over post-Brexit trade relations. And EU. Britain’s Prime Minister Boris Johnson said Monday that the country could still crash without a deal.
“The situation is the same, there are difficulties,” British Prime Minister Boris Johnson told reporters on Monday. “It is important for everyone to understand that the UK has been able to fully control its own laws and also that we have been able to control our own fishing.”
“It remains to be seen whether the terms of the WTO will be more satisfactory for the UK and how we will be able to cope with the way things are going.
Sterling extended Monday’s losses on Tuesday, falling another 0.5% to around 3 1.34.
In Asia, stocks fell amid losses due to new coronavirus strains. Outside of Japan, MSCI’s broad index of Asia-Pacific shares fell 0.43%.
On Wall Street, stock futures were mixed following a volatile session as the Dow Jones Industrial Average erased a 400-point deficit.
The move came after Congress on Monday night passed a coronavirus relief and government spending package. The bill now goes to the desk of President Donald Trump.
In terms of data, the UK’s third quarter GDP and German consumer sentiment figures are pending at London time at 1am.
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