Hello and welcome to our continued coverage of the global economy, financial markets, euro area and business.
European markets are heading for a lower opening today as concern over a third wave of Covid-19 increases.
Overnight, Germany announced it would extend its lockdown over the Easter period in an attempt to slow the pandemic.
Chancellor Angela Merkel warned the country was in a “very serious” situation and was racing to get the vaccine.
Under the new restrictions, social gatherings would be limited during the Easter period, with April 1-5 on “quiet days” where no more than five adults from two households can meet at home at a time.
Merkel said at a press conference on Monday evening:
“We are now basically in a new pandemic. The British mutation has become dominant.
Yesterday British Prime Minister Boris Johnson warned that a third wave of coronavirus elsewhere in Europe would inevitably affect the UK.
The people of this country should not be deluded that past experience has taught us that when a wave hits our friends, it hits our shores as well. I hope we will feel these effects in due course.
Travel and hospitality stocks fell yesterday as hopes for a summer getaway took a hit.
Major European exchanges are expected to open lower, with the UK’s FTSE 100 expected to fall 0.5%.
Further lockdown restrictions would blow hopes of a strong economic recovery this year as Stephen Innes of AXI trader points out.
Germany is trying to slow the third wave by locking in Easter. Although major eurozone economies are aiming for a full vaccine rollout by August, where they could still be successful, in the meantime a sustained recovery in consumer spending relative to the US and UK is expected. disappoint.
Oil is struggling in Asia as foreclosure issues again show their ugliness. German Chancellor Merkel has offered to extend and slightly tighten the current Covid restriction for an additional 4 weeks. Dr Fauci warns of a possible surge in Covid in the United States following the rise in Europe. And the latter will likely ring in New York by reopening the alarm bells with Mayor De Blasio calling for a pause in the reopening narrative.
- 7am GMT: UK unemployment report
- 11am GMT: Industrial trends survey of UK factories in March
- 11:50 GMT: Bank of England Governor Andrew Bailey at Economist Sustainability Week on ‘Unlocking Investment for Net Zero’
- 2 p.m. GMT: report on new home sales in the United States