By Peter Nurse
Investing.com - European stock markets are seen opening mixed Tuesday, as fresh Covid concerns combine with increasing optimism about the global economic recovery.
At 2:05 AM ET (0705 GMT), the DAX futures contract in Germany traded 0.1% higher, CAC 40 futures in France climbed 0.1%, while the FTSE 100 futures contract in the U.K. fell 0.2%.
European markets received a positive handover from the U.S. after the Dow Jones Industrial Average and the S&P 500 closed Monday at record highs on Wall Street. Asian markets tended to follow suit as investors expressed confidence in the return to health of the global economy from the pandemic.
However, the tone in Europe is more subdued after Germany on Monday became the latest country in the region to suspend the use of AstraZeneca’s COVID-19 vaccine after reports of possible serious side effects.
Although the World Health Organization, the European Medicines Agency and the drug maker have sought to downplay concerns about possible blood clots in recipients of the vaccine, these moves cannot but help but slow further the pace of vaccinations in the region, delaying any recovery from the pandemic.
Adding to these worries, the French health ministry announced late Monday that a new coronavirus variant has been found in Brittany.
Away from Europe, the Federal Reserve starts a two-day policy meeting later Tuesday. The spotlight on the central bank will be even more intense this week as a surge in bond yields and a rebounding U.S. economy has called into question its very loose monetary policies.
Additionally, the Bank of England meets on Thursday and the Bank of Japan concludes its two-day get together the following day.
In corporate news, Credit Suisse (NYSE:CS) will be in focus after the Swiss banking giant flagged the possibility of writedowns following the collapse of its Greensill-linked supply chain finance funds and other dealings with the specialty firm.
Elsewhere, Volkswagen (DE:VOWG) said it will target an operating margin of 7%-8% in the years after 2021, with the help of a further 2 billion euros ($2.39 billion) in fixed cost cuts.
Oil prices edged lower Tuesday, with traders banking profits after recent gains ahead of key U.S. crude inventory data from the American Petroleum Institute later in the session.
U.S. stockpiles have been rising as production continues a slow recovery from February’s unexpected cold snap in Texas and the surrounding areas. These inventories increased by 12.8 million barrels in the week to March 5, compared with expectations for a rise of less than 1 million barrels.
U.S. crude futures traded 1.1% lower at $64.66 a barrel, while the Brent contract fell 1.1% to $68.14. Both contracts climbed last week to their highest levels since the start of the pandemic.
Elsewhere, gold futures fell 0.2% to $1,726.15/oz, while EUR/USD traded 0.1% lower at 1.1919.