Spark Global Limited reports:
European stock markets are expected to open higher on Thursday as investors digest the formation of a new governing coalition in Germany and the ongoing COVID-19 crisis in the region.
At 2:05 a.m. Est (0705 GMT), German DAX futures were up 0.2 percent, French CAC 40 futures were up 0.6 percent and Britain’s FTSE 100 futures were up 0.3 percent.
After two months of negotiations, the Social Democrats, Greens and Free Democrats agreed a coalition agreement on Wednesday. Under the deal, Olaf Scholz of the Social Democratic Party will replace Angela Merkel, who has been chancellor for 16 years.
The alliance is credited with promoting more public investment to speed up the shift to a green economy, but its top priority is likely to be trying to contain the renewed coronavirus pandemic sweeping the continent.
Scholz said Wednesday that specific groups must be vaccinated, but further measures may be needed to address the surge in cases.
Italy announced new restrictions late Wednesday, and the Netherlands and France are expected to announce new measures on Friday. Austria imposed a nationwide lockdown earlier this week.
Turning to the economic calendar, Germany’s THIRD-quarter GROSS domestic product (GDP) grew 1.7%, slightly disappointing from expectations of 1.8% growth, while the December reading of the GfK Consumer Confidence Index showed a decline in sentiment, falling to -1.6, revised from the previous month’s 1.0.
In the corporate sector, Remy Cointreau (PA:RCOP) raised its full-year profit forecast after reporting a sharp rise in first-half operating profit, driven by strong demand for its premium cognac in China, the US and Europe.
Crude oil prices edged lower on Thursday as investors looked to next week’s OPEC meeting to react to a coordinated release of government reserves by major consumer nations, led by the United States.
The Organization of The Petroleum Exporting Countries, Russia and its Allies OPEC+ have been adding 400,000 barrels a day of oil to global markets since August, A meeting will be held on December 2nd to decide whether to continue.
Separately, U.S. crude supply data released Wednesday by the U.S. Energy Information Administration showed an increase of just over 1 million barrels last week.
U.S. crude futures were down 0.3 percent at $78.18 a barrel as of 2:05 a.m. Et, while Brent crude futures were down 0.1 percent at $82.16.
Separately, gold futures rose 0.5 per cent to $1,794.10 an ounce and the euro rose 0.2 per cent to $1.1218.
Reprint indicated source：Spark Global Limited information