European markets seen lower as investors look to economic data and U.S. virus surge
- The Greater Miami area on Monday became the latest new Covid-19 hotspot in the U.S. to reverse some of its reopening efforts, as new cases continue to surge nationwide.
- German industrial productioncame in weaker than expected on Tuesday morning, rising by 7.8% in May, a more modest rebound than the 10% expected by analysts polled by Reuters, following a -17.5% contraction in April.
European markets are expected to open lower Tuesday as concerns over the threat to economic recovery of new coronavirus cases in the U.S. and weak German data put the brakes on Monday's rally.
Britain's FTSE 100 is seen around 41 points lower at 6,145, Germany's DAX is set to slide by around 66 points to 12,667 and France's CAC 40 is expected to open down by around 42 points at 5,040, according to IG data.
European stocks look set to follow the mixed tone set in Asia Pacific overnight, where markets in South Korea and Japan retreated, while mainland Chinese shares continued Monday's blockbuster rally.
German industrial production data came in weaker than expected on Tuesday morning, rising by 7.8% in May, a more modest rebound than the 10% expected by analysts polled by Reuters following a -17.5% contraction in April.
The Greater Miami area on Monday became the latest new Covid-19 hot spot in the U.S. to reverse some of its reopening efforts, as new cases continue to surge nationwide. There are now more than 2.9 million confirmed cases in the U.S. and more than 130,000 deaths, according to data compiled by Johns Hopkins University.
Meanwhile, further alarm bells have been sounded over the possible airborne spread of the virus, with the World Health Organization now reviewing a request from over 200 scientists for renewed guidance.
However, investor focus remains attuned to news of potential treatments and vaccines, with Regeneron Pharmaceuticals in the U.S. and China's Sinovac Biotech both launching late-stage trials on Monday of an antibody cocktail and potential vaccine, respectively.
Markets will also be paying attention to trade tensions between the world's two largest economies. U.S. President Donald Trump's Chief of Staff Mark Meadows said Monday that Trump is considering executive orders targeting Chinese manufacturing and immigration, without giving further details at this stage.
In the U.K., investors are looking ahead to Wednesday's announcement of the government's plans for the next stage of the country's economic recovery from the pandemic, with hopes for further fiscal stimulus from Chancellor Rishi Sunak.
On the data front, Italian retail sales for May are also due during the early hours of Tuesday's trading session.
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