European Stocks Mixed as Tensions Remain Over €750B Fund
European stock futures are mixed as the 27 EU leaders remain divided over the stimulus plan of 750bn euros. EU leaders fail to conclude a plan on Sunday despite marathon negotiations ran into the third day. The failure of talks has raised investors and analyst’s concerns over the bloc’s viability.
The group of Frugal Four, which includes countries like Austria, Denmark, the Netherlands, and Sweden, are unlikely to retreat from demands for cuts to the package, while other countries like Germany and France are not agreeing over the level of grants ailing economies are looking to receive.
“My hope is that we reach an agreement and that the headline … tomorrow is that the EU has accomplished mission impossible,” the European Council President said at their third dinner in a row at the Brussels conference centre. “That is my heartfelt wish … after three days of non-stop work,” the president added.
Asian stocks are largely tumbling in Monday trading amid problems in Europe over the funds and lower exports from key Asian countries.
Japan, which is among the largest exporters reported a 26.2% decline in June exports compared to a year earlier. This represents a higher than expected decline in exports. Chinese shares soared as the country has sustained its benchmark lending rate for the third consecutive month.
Traders have also been showing concerns over the rising coronavirus infections. Meanwhile, unemployment claims also grew higher than analysts’ expectations. U.S. unemployment claims jumped to 1.3 million for the week ending July 11, compared to analyst’s expectation for 1.25 million new filings.
What Does it Mean?
- European futures are mixed and trading results depend on EU fund talks.
- US futures are in green.
- The US dollar index recovered from lows that it had hit last week.
- Euro outperformed Dollar last week.