European Shares To See Cautious Start As Virus Spikes

European stocks are seen opening on a positive note Tuesday, even as a cautious undertone may prevail amid concerns about fresh coronavirus flare-ups and the re-imposition of restrictions in parts of the world.

Investors will also keep tabs on the upcoming U.S. jobs report and second-quarter earnings of top U.S. companies for directional cues.

Asian stocks fell for a second day running as new cases of the Delta variant continued to rise, forcing several governments to act to prevent another deadly wave of the disease.

In Australia, the cities of Sydney, Perth, Brisbane and Darwin have all been put into lockdown as the outbreak spreads.

British Defense Secretary Ben Wallace and half a dozen U.K. military commanders are self-isolating after the head of Britain’s Armed forces tested positive for the coronavirus.

Russia’s Saint Petersburg posted record Covid-19 deaths on Monday. South Africa has entered at least two weeks of strict lockdown.

Turkey has halted flights and all direct travel from Bangladesh, Brazil, South Africa, India, Nepal and Sri Lanka, spurring concerns about a meaningful economic recovery anytime soon.

The strain, now in 85 countries, is the most contagious of any COVID-19 variant so far identified, according to the World Health Organization.

Gold hovered near a one-week low hit in the previous session as the dollar firmed up on concerns that the Fed may tighten its monetary policy sooner than expected.

Oil prices slipped for a second day on worries about slower fuel demand growth and amid bets that OPEC and other major producers will decide to lift output at their meeting this week.

Bitcoin and other digital currencies shrugged off the move by Britain’s financial watchdog to target Binance exchange.

Economic confidence data from euro area and mortgage approval figures from the U.K. are due later in the session, headlining a busy day for the European economic news.

U.S. stocks closed mixed overnight as falling bond yields weighed on the banking sector and Boeing shares fell sharply after reports that the company’s 777X jet would not be certified until 2023.

The tech-heavy Nasdaq Composite rallied 1 percent to settle at a record closing high and the S&P 500 gained 0.2 percent to reach a new closing high amid easing concerns over inflation, while the Dow dropped 0.4 percent.

European stocks fell notably on Monday due to concerns about the spread of the delta variant Covid-19 in Europe and Asia.

The pan European Stoxx 600 shed 0.6 percent. The German DAX gave up 0.3 percent, France’s CAC 40 index lost 1 percent and the U.K.’s FTSE 100 declined 0.9 percent.

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