Following on from last Friday’s bumpy landing, the European markets couldn’t shake their anxieties at the start of Monday’s trading.
Much of the focus, in Europe at least, is on the vaccine-related tensions between the UK and EU.
Over the weekend European Commission chief Ursula von der Leyen issued a warning to AstraZeneca PLC (LON:AZN) (NASDAQ:AZN), and by extension the UK, stating that the EU has the power to ‘forbid’ exports of the vaccine.
This as a third wave of covid-19 creeps its way across continental Europe in the face of a sluggish vaccine rollout, leading to fresh lockdowns in France and Italy.
And with a delay in 5 million Oxford/AstraZeneca doses from India already threatening the UK’s own vaccine timetable, there are fears that this EU export ban would further hinder the country’s restriction-easing plans.
These anxieties, coupled with last week’s post-Fed bond sell-off, made themselves felt after the bell.
The FTSE was back below 6,700 as it shed half a percent, lurking at levels last seen 2 and a half weeks ago.
And though the DAX, bruised at the end of last week but not too far off its all-time highs, kept its own losses to a minimum, the CAC fell 0.8% to a 12-day low of 5,951.
Looking ahead and the Dow Jones is facing its own 10-day low this afternoon, with a prospective 0.2% decline leaving it hovering around 32,550.
It’s another busy week for Jerome Powell, who speaks at a virtual event this Monday before testifying in front of the House and Senate this week, so the US markets could be in for more central bank drama.
"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."