European Shares Poised For Positive Opening

European stocks look set to open on a positive note Tuesday as traders return to their desks after a long holiday weekend.

Asian markets are trading mixed as concerns that China is curtailing loan growth and worries over rising Covid-19 cases around the world offset hopes for a rapid economic recovery in the world’s largest economy.

China is looking to rein in lending for the rest of this year to bring the housing boom under control, media reports suggest.

India is reeling under the ‘second wave’ of Covid-19, while a third wave of deadly viral infection is now sweeping across Europe.

Japanese health authorities are concerned that variants of the coronavirus are driving a nascent fourth wave in the pandemic.

The spring 2021 meetings of the International Monetary Fund (IMF) and World Bank are taking place this week, with discussion likely to revolve around how to steer fiscal and monetary policies in the period ahead.

U.S. Treasury Secretary Janet Yellen is among the participants of a climate discussion today while Federal Reserve Chairman Jerome Powell takes part in a panel about the global economy on Thursday.

Yellen made the case for a global minimum corporate tax rate on Monday as President Joe Biden seeks to raise levies on U.S. companies in a move that may prompt them to seek locations with lower taxes.

The Fed publishes minutes from its March meeting on Wednesday, with investors looking for insight as to what it will take for policymakers to begin tightening sooner than expected.

Gold prices hit over one-week high as the dollar sank in tandem with retreating Treasury yields. Oil rebounded after falling more than 4 percent overnight on the prospect of producers returning more than 2 million barrels per day of supply to the market by July.

Unemployment data from euro area and Eurozone Sentix investor confidence survey results are due later in the session, headlining a light day for the European economic news.

Earlier in the day, a private survey showed China’s services sector expanded at the fastest pace in three months in March.

U.S. stocks rallied overnight as upbeat jobs and service sector activity data amid the lifting of coronavirus pandemic-related restrictions added to evidence the economic recovery is gaining momentum.

The Dow climbed 1.1 percent and the S&P 500 jumped 1.4 percent to reach new record closing highs while the tech-heavy Nasdaq Composite index rallied 1.7 percent.

European markets were closed on Monday in observance of Easter Monday.

Source: Read Full Article