Investing.com – European stock markets are set to open higher Monday amid hopes of a global economic recovery aided by more stimulus, but concerns remain over the increasing number of new coronavirus cases.
Economic data of late has tended to point to a reasonably prompt economic recovery around the world. The U.S. recorded last week the addition of 4.8 million jobs in June, much more than expected, while PMI data in China and throughout Europe has tended to suggest renewed confidence of a brisk pickup in activity.
Additionally, the U.S. Congress is set to resume talks on the next stimulus bill later this month, while Germany, Europe’s economic powerhouse, will be keen to cement the structure of a Covid-19 recovery fund as it now has the six-month rotating presidency of the European Union.
A meeting of euro area finance ministers on Thursday could be telling before a looming July 17-18 summit – crucial to securing agreement on a recovery fund.
The likely need for additional stimulus grows as the number of Covid-19 cases shows no signs of slowing down. The World Health Organization reported the highest number of cases over a 24-hour period, with the U.S. reporting a spike in cases over the long holiday weekend.
Turning back to Europe, Swiss manufacturer Geberit (SIX:GEBN)said Monday that its sales fell 9.8% in the first half of the year due to the impact of the coronavirus pandemic.
German factory orders continued the recent data trend of suggesting a recovery, jumping 10.4% in May, admittedly slightly below estimates, after falling by a revised 26.2% the previous month.
Later in the session, the June construction PMI release from the U.K. will be studied, as will eurozone retail sales for May.
Oil prices traded in a mixed fashion Monday, as the continued growth of new coronavirus cases in the U.S. weighed on the American benchmark, WTI futures, while the global benchmark Brent futures posted small gains on falling supply.
Coronavirus cases in the U.S. increased by almost 56,000 on Sunday, according to Johns Hopkins University. raising concerns that this jump could hit oil demand in the United States.
Elsewhere, production by the Organization of the Petroleum Exporting Countries and allies, including Russia, has fallen to its lowest in decades, as the group cuts output by a record 9.7 million barrels per day for a third month in July.
At 2:05 AM ET, U.S. crude futures traded 0.2% lower at $40.58 a barrel. The international benchmark Brent contract rose 0.9% to $43.19.