European Shares Seen Flat To Lower In Cautious Trade

European stocks are seen opening flat to slightly lower on Wednesday after posting strong gains in the previous session.

Asian markets traded mostly higher to hover near a four-month high despite disappointing news on the coronavirus, with several U.S. states seeing record infections and the death toll in Latin America passing 100,000.

The European Union plans to ban U.S. travellers when it reopens its borders on July 1 because of the Trump administration’s poor handling of the Covid-19 pandemic, the New York Times reported. The EU is expected to submit the list to the 27 bloc members next week.

The dollar retreated after upbeat surveys of manufacturing from Europe and amid reports that the Trump administration is seriously considering another stimulus bill that would focus on getting people back to work quickly.

Gold climbed to its highest level in nearly eight years, while oil extended losses from the previous session.

Business sentiment survey results from Germany and France are due later in the session, headlining a light day for the European economic news.

U.S. stocks rose for a second straight session overnight, but ended well off their day’s lows as reports of a spike in virus cases in some states offset positive news out of Apple’s Worldwide Developers Conference.

The tech-heavy Nasdaq Composite rose 0.7 percent to reach fresh record closing high, while the Dow Jones Industrial Average gained half a percent and the S&P 500 added 0.4 percent.

European markets showed strong moves to the upside on Tuesday as investors cheered upbeat economic data from the euro area, news of significant relaxations to lockdown rules in Britain and Trump’s reassuring comments on the U.S.-China trade deal.

The pan European Stoxx 600 advanced 1.3 percent. The German DAX spiked 2.1 percent, France’s CAC 40 index rallied 1.4 percent and the U.K.’s FTSE 100 climbed 1.2 percent.

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