European Shares Seen Up On Economic Revival Hopes

European stocks look set to open on a positive note Monday as several countries relax lockdown restrictions.

British Prime Minister Boris Johnson on Sunday announced a phased plan to ease a nationwide coronavirus lockdown starting this week amid growing demand from his own MPs to get the economy moving again.

In France, hair salons, clothes shops, florists and book shops are opening today and people no longer need permits to travel.

New York Governor Andrew Cuomo said that some regions in New York are ready to start adding back jobs in mid-May and he would on Monday release more details.

Despite a spike in Covid-19 cases, especially in states like Maharashtra and Gujarat, India’s Prime Minister Narendra Modi will have a lengthy, open-ended discussion with chief ministers of various states today to discuss the next steps of a graded exit from the lockdown.

Asian stocks moved higher along with U.S. stock futures as France, Italy and the U.K. all reported the fewest coronavirus deaths since March, and the People’s Bank of China pledged “more powerful” policies to support economic recovery and job creation.

Regional Federal Reserve presidents James Bullard, Loretta Mester and Patrick Harker are due to speak at events on Tuesday, while Federal Reserve chairman Jerome Powell will talk to the Peterson Institute for International Economics via webcast on Wednesday.

The week ahead is also filled with data announcements including U.S. unemployment claims, retail sales, inflation and European factory output and trade.

OPEC’s monthly oil market report is due on Wednesday while China will release industrial production and retail sales data for April on Friday.

The dollar gained ground and gold traded firm above $1,700 per ounce, while oil prices dropped after big gains last week.

U.S. stocks posted strong gains on Friday after data showed the economy lost fewer jobs in April than feared due to the coronavirus crisis.

Data showed that U.S. non-farm employment plummeted by 20.5 million jobs in April, compared to expectations of 22.0 million.

The Dow Jones Industrial Average rallied 1.9 percent and the S&P 500 surged 1.7 percent, while the tech-heavy Nasdaq Composite index surged 1.6 percent to reach its best closing level in well over two months.

European markets climbed on Friday as investors cheered positive news flow regarding gradual reopening of businesses and talks between top trade negotiators in the Washington and Beijing

The pan European Stoxx 600 rose 0.9 percent. The German DAX surged 1.4 percent and France’s CAC 40 index advanced 1.1 percent, while the U.K. market was closed for a bank holiday.

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