On Wednesday European stocks are expected to open in negative territory as global markets keep an eye on geopolitical tensions separately between China and India, and North and South Korea, amid a resurgence of coronavirus cases in the United States and Asia.
London’s FTSE is seen opening 16 points lower at 6,227, Germany’s DAX is expected to open 69 points lower at 12,251, France’s CAC 40 is expected to open 30 points lower at 4,929 and Italy’s FTSE MIB 39 points lower at 19,527, according to IG.
European market sentiment is expected to follow the trend seen in Asia overnight, where stocks traded lower following warnings from the International Monetary Fund (IMF) and on concerns surrounding geopolitical flare-ups between neighboring countries in Asia.
Tensions escalated along the Korean peninsula Tuesday after North Korea reportedly destroyed a liaison office with the South. Afterwards, South Korea’s presidential Blue House said Wednesday that it would no longer accept unreasonable behavior by North Korea, Reuters reported.
Meanwhile, Indian and Chinese troops have clashed again this week in the latest of a series of recent clashes in a contested Himalayan border area, with a skirmish late on Monday leading to casualties for the first time in more than four decades.
Investors in Europe will also be keeping up to date with the latest coronavirus news. The number of confirmed coronavirus cases around the world has now topped 8 million. The World Health Organization has warned that while the virus has slowed in parts of Europe it is gaining speed in other parts of the world, including parts of Africa and the Americas.
A new cluster of cases in Beijing is also being watched closely. Some good news came on Tuesday after Oxford University scientists announced that Dexamethasone, a cheap and widely available steroid, was proven to save lives when given to patients with severe cases of coronavirus.