European Stock Futures Mixed After a Day of Mild Gains
European stock futures are mixed on Tuesday as investors have been showing concerns over rising coronavirus infections and geopolitical tensions. The trade tensions between the United States and China continue to impact the trader’s sentiments.
U.S. President Donald Trump issued an executive order on Friday. The order forces China’s ByteDance to spin off or sell its U.S. TikTok business in the next 90 days. The executive order says ByteDance is a threat to the national security of the United States.
The United States and China have also suspended their planned talks, with no new date agreed upon.
On the other hand, the coronavirus spread has been hindering investor’s sentiments. New Zealand’s Prime Minister Jacinda Ardern has delayed the elections that were originally set to help in mid-September.
“The number of new COVID-19 cases across Europe is the number one thing to watch in the coming days, as it has the potential to send nascent economic recovery into reverse.”
Neil Wilson, the chief market analyst for Markets.com, said
“Germany has extended travel warnings to nearly all of Spain, which while making it easier to grab a sun lounger is taking the shine off travel and leisure stocks again this morning,” Neil Wilson added.
Travel and leisure stocks came under pressure after the UK has added several new countries to its quarantine list. Travellers from several countries would have to quarantine themselves for fourteen days.
On the other hand, the US stocks continued the upside momentum, with the S&P 500 is currently standing slightly below the record level. Consumer staples and the chip sector helped in generating big gains on Monday.
What Does This Mean for Traders?
- US stock futures are in green but industrial stocks are struggling.
- Gold price is trading slightly below the $2000 level.
- US crude oil reversed some gains on Tuesday.
- Euro jumped on Monday while the US dollar extended the bearish trend.