European stocks may open higher on Tuesday after China’s central bank moved to cut the amount of cash that banks mush hold as reserves, replenishing liquidity into the financial system in a bid to support growth and cut financing costs for businesses.
Meanwhile, new data showed China’s export growth hit a new record in November but faced pressure from a strong yuan, weakening demand and higher costs. Import growth quickened and came in well above expectations, indicating stronger domestic economic activity.
Asian markets were seeing broad-based gains as anxiety about the coronavirus’s latest virus eased.
Treasuries steadied after tumbling and the dollar rose, while oil extended gains after climbing nearly 5 percent overnight as Iran nuclear talks hit roadblocks.
Industrial production and economic confidence figures from Germany as well as revised quarterly national accounts from euro area are due later in the session, headlining a busy day for the European economic news.
Across the Atlantic, news on the Omicron front along with reports on the U.S. trade deficit and labor productivity and costs may influence sentiment.
U.S. stocks showed a strong move to the upside overnight on hopes that the newest Covid-19 variant will prove less virulent than earlier strains.
The Dow surged 1.9 percent, the tech-heavy Nasdaq Composite gained 0.9 percent and the S&P 500 added 1.2 percent.
European stocks also rallied on Monday after early reports suggested that the Omicron variant have had mild symptoms.
The pan European Stoxx 600 gained 1.3 percent. The German DAX advanced 1.4 percent, while the U.K.’s FTSE 100 and France’s CAC 40 index both rose about 1.5 percent.
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