European stocks set for soft open on China COVID concerns


(RTTNews) – European stocks are set to open on a lukewarm note on Thursday as rising COVID cases in China following the easing of tough restrictions fueled concerns that countries could tighten various restrictions on travelers from the country.

Rising bond yields on fears of a pick-up in inflation as China reopens could also keep investors away.

Asian markets traded lower overall, with benchmarks in Japan, Hong Kong, South Korea and Australia falling more than 1%.

The dollar held steady, helping to spur a rally in gold prices after a 1% drop in the previous session.

Oil extended losses overnight on worries about rising COVID cases in China and expectations of another U.S. interest rate hike.

The European economic calendar remains light today as the New Year approaches.

Across the Atlantic, a report on weekly jobless claims could grab attention ahead of next week’s hotly-watched monthly jobs report, which could shed additional light on the outlook for interest rates and inflation. economy.

The release of minutes from the Fed’s December meeting scheduled for next Wednesday could also provide some insight into the outlook for rates.

U.S. stocks fell sharply overnight as recession fears and growing worries about the re-emergence of COVID weighed on markets heading into 2023.

The tech-heavy Nasdaq Composite fell 1.4% to a closing low in 2022, while the S&P 500 lost 1.2% and the Dow Jones fell 1.1%.

European stocks closed significantly lower on Wednesday as several countries announced plans to impose entry restrictions for those coming from China.

The pan-European STOXX 600 slipped 0.1%. Germany’s DAX fell 0.5% and France’s CAC 40 index fell 0.6% while Britain’s FTSE rose 0.3% as trading resumed after a long holiday weekend.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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