Focus on the peak of the American coronavirus, optimistic economic data


European stocks opened mixed Friday after optimistic economic data from the United States and China, while a spike in coronavirus infections in the United States dampens optimism.

The pan-European Stoxx 600 hovered just above the flat line at the start of trade, tech stocks adding 0.6% to increase gains while the oil and gas sector fell 0.3%.European markets are struggling to seize overnight momentum from the Asia-Pacific region, where stocks have risen after survey shows China’s service sector has grown at its fastest pace for more of a decade in June, according to Reuters.

This followed a large rally on Thursday evening after the US non-farm payroll rose 4.8 million in June, exceeding expectations by an increase of 3 million. The US Department of Labor also revealed on Thursday that the first jobless claims had increased by 1.427 million last week, more than expected.

Market focus remains tuned to news of a resurgence of coronavirus cases in the United States, with a Reuters tally showing that the United States reported more than 55,000 new cases on Thursday, a daily world record. The White House’s top infectious disease specialist, Dr. Anthony Fauci, warned Thursday that the virus may have mutated to become more infectious.

Back in Europe, German car sales fell 40% in June to a 30-year low, according to the German newspaper Tagesspiegel. At the same time, factories in the UK are increasingly planning to fire workers, according to industry survey Make U.K., on Friday, 46% of manufacturers plan to fire in the next six months, up from 25% in May.

As of Friday morning, IHS Markit end services and PMI composite indexes are expected to exit the eurozone and may provide insight into the health of the bloc’s attempted economic recovery.


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