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European Markets Look Soft despite Covid-19 News

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European equity futures are pointing to a negative opening for the headline bourses despite positive vaccine news surrounding the global coronavirus pandemic (Covid-19).

Global financial markets, including European equities, closed mostly higher on Monday following news that a more effective coronavirus vaccine from Moderna boosted global sentiment including the sentiment among European traders.

The drug maker, Moderna, released preliminary results that showed that their Covid-19 vaccine was more than 94 percent effective.

As of now, stock futures in the euro area, indicate that the benchmark London FTSE stock exchange will open 24 points lower at 6,405. The German benchmark, the DAX us set to open 66 points lower at 13,101 and the French CAC 40 is set to open thirty (30) points lower at 5,453. The Italian FTSE MIB is set to start the day 101 points lower when the open bell rings.

European Traders watch Coronavirus Vaccine News and Brexit

Moderna’s news follows last week’s vaccine headlines from Pfizer and BioNTech’s late-stage coronavirus vaccine trial. Their vaccine is better than 90 percent effective.

The news from Moderna sent Wall Street higher as well as the Asian and Pacific Rim equity markets overnight. However, by late Monday evening U.S. equity futures had turned negative. This comes after their three headline benchmarks set all-time record highs.

Regional Politics are in the Spotlight

Brexit is in the news after sources indicated that the United Kingdom and European Union could reach a trade agreement by as early as next week. The United Kingdom has also signaled they prefer a trade agreement in place before leaving the euro area at the end of the year. This has boosted the British pound (GBP) currency markets.

Traders are also watching the Eurozone economic recovery. Both Hungary and Poland have blocked adopting the euro area 2021 to 2027 budget and recovery fund. Both countries disagree with the clause that makes access to funds conditional about respecting the rule of law in the Eurozone.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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