Wednesday, April 21We Break the News

London Futures in the Red, Chinese Yuan Trades Flat, European Stocks Set to Open Lower

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London Futures in the Red
Contracts on the FTSE 100 futures were lower on Tuesday, in line with its European peers, amid concerns over infections and lockdowns in the continent. Meanwhile, the US National Institute of Allergy and Infectious Diseases questioned AstraZeneca Covid-19 vaccine trial data, a day after results from an American trial of the AstraZeneca/Oxford vaccine were released on Monday. Finally, tensions with China also weighed on investors’ mood. The EU, the US and Canada imposed sanctions on Chinese officials for human rights abuses in Xinjiang. On the data front, the unemployment rate unexpectedly fell to 5% in the three months to January

Chinese Yuan Trades Flat
The Chinese Yuan was little moved at 6.50735 against the US Dollar on Tuesday after the onshore rate was set at 6.5036. Sentiment remained muted after the US and others including the EU on Monday imposed sanctions on China over Xinjiang’s abuse, while Beijing hit back with punitive measures against Europe. Local 10-year bond yields eased to 6-week lows to 3.206% while US 10-year rates eased from 14-month highs to 1.665%. The US’ strengthening recovery has boosted long term yields and the attractiveness of the Greenback. Meantime, Congressional testimony by Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen is expected to provide more indications of U.S. officials’ tolerance for higher yields later in the session.
European Stocks Set to Open Lower
Major bourses in Europe are seen opening lower on Tuesday as investors remain concerned over rising coronavirus infections and tighter restrictions with Germany extending the lockdown until April 18th. Meanwhile, the US National Institute of Allergy and Infectious Diseases questioned AstraZeneca Covid-19 vaccine trial data, a day after results from an American trial of the AstraZeneca/Oxford vaccine were released on Monday. Finally, tensions with China also weighed on investors’ mood. The EU, the US and Canada imposed sanctions on Chinese officials for human rights abuses in Xinjiang.

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