European Shares Seen Flat To Higher At Open

European stocks are seen opening flat to slightly higher on Tuesday as investors weigh hopes for more stimulus against fears of a second and even a third wave of the coronavirus pandemic.

“It is going to be almost impossible for individual countries to keep their borders shut for the foreseeable future. Economies have to open up, people have to work, trade has to resume,” WHO Emergencies Program head Mike Ryan said after a surge of infections prompted countries to reimpose some travel restrictions in recent days.

Asian markets pared early gains as U.S.-China tensions intensified and the increase in Covid-19 infections from China to Spain and Germany underscored the difficulty of curbing the pandemic.

Gold extended its record-breaking rally and oil prices rose for a third straight day, as U.S. Senate Republicans formally unveiled their roughly $1 trillion stimulus proposal and investors wagered the Federal Reserve will reinforce its dovish message on Wednesday. The dollar narrowed losses after hitting a 22-month low.

U.S. stocks advanced overnight after data showed U.S. orders for durable goods rose more than expected in June and Treasury Secretary Steven Mnuchin said Republicans have finalized their new coronavirus relief legislation.

The Dow Jones Industrial Average inched up 0.4 percent and the S&P 500 gained 0.7 percent, while the tech-heavy Nasdaq Composite index rallied 1.7 percent.

European stocks ended lower on Monday as investors fretted over escalating U.S.-China tensions and a recent jump in coronavirus infections in certain European regions.

Travel-related stocks were hit hard following news about the U.K. government imposing quarantine on travelers returning from Spain.

The pan European Stoxx 600 eased 0.3 percent. The German DAX finished marginally higher, while France’s CAC 40 index and the U.K.’s FTSE 100 both fell 0.3 percent.

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