European Shares Seen Lower Amid Brexit Worries
European stocks are seen opening on a cautious note Monday as Brexit talks remain deadlocked and many European nations halted flights to and fro from the U.K. amid unease over a new coronavirus strain that is shutting much of the United Kingdom.
British Prime Minister Boris Johnson’s office said that the EU is “continuing to make demands that are incompatible with our independence.”
The Prime Minister will chair an emergency response meeting today to discuss international travel and the flow of freight in and out of Britain.
Apple has temporarily closed its 53 California stores through Christmas as coronavirus cases surge in the state.
The coronavirus situation in parts of North Asia such as Japan and South Korea also remains severe.
Asian markets fell in cautious trade amid increased concerns surrounding global economic recovery.
The British pound and oil were hit by fears over stuttering Brexit talks while gold gained ground on stimulus optimism.
The U.S. dollar found some support from a Nikkei report that Japanese Prime Minister Yoshihide Suga told Finance Ministry officials in November to make sure the dollar did not fall below 100 yen.
China kept its benchmark lending rate for corporate and household loans unchanged today, reflecting continued recovery from coronavirus shocks.
Separately, Beijing accused the United States of “bullying” after Washington announced export controls on dozens of Chinese firms over alleged ties to China’s military. The commerce ministry vowed to “take necessary measures” to safeguard Chinese companies’ rights.
U.S. stocks ended lower on Friday as investors waited for more concrete developments on a new fiscal stimulus bill along with a spending bill to avoid a government shutdown.
The Dow Jones Industrial Average and the S&P 500 both gave up around 0.4 percent, while the tech-heavy Nasdaq Composite index finished marginally lower.
European stocks fell slightly on Friday as investors kept close watch on Brexit talks, U.S. stimulus negotiations and Covid-19 vaccine rollouts.
Moderna received the FDA nod for emergency use of its coronavirus vaccine, while Johnson & Johnson said it expects to release late-stage coronavirus vaccine data in January.
The pan European Stoxx 600 declined 0.4 percent. The German DAX and the U.K.’s FTSE 100 both eased around 0.3 percent, while France’s CAC 40 index dropped 0.4 percent.
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