European markets head for negative open despite more positive vaccine news

  • London's FTSE is seen opening 24 points lower at 6,406, Germany's DAX 66 points lower at 13,101,France's CAC 40 down 30 points at 5,453 and Italy's FTSE MIB 101 points lower at 21,172, according to IG.

LONDON — European stocks are expected to open lower on Tuesday despite a backdrop of more positive coronavirus vaccine news from Moderna on Monday.

London's FTSE is seen opening 24 points lower at 6,406, Germany's DAX 66 points lower at 13,101, France's CAC 40 down 30 points at 5,453 and Italy's FTSE MIB 101 points lower at 21,172, according to IG.

European stocks closed higher on Monday as hopes for an effective coronavirus vaccine were further boosted by positive news from Moderna, which announced that preliminary data showed its coronavirus vaccine was more than 94% effective at preventing Covid-19.

The announcement followed similarly positive news last week from Pfizer and BioNTech's late-stage coronavirus vaccine trial that showed their vaccine was more than 90% effective.

The Moderna news boosted stocks on Wall Street and markets in the Asia-Pacific region overnight, with shares mostly rising in Tuesday's trading session. But U.S. stock futures were in negative territory on Monday night despite two of the three major market benchmarks closed at record levels.

In Europe, focus is on the outlook for the EU's near-term economic recovery after Hungary and Poland blocked the adoption of the 2021-2027 budget and recovery fund by EU governments on Monday. They did this because the budget law includes a clause that makes access to money conditional on respecting the rule of law.

On Tuesday, euro zone construction output is due, and earnings come from EasyJet, Experian and Vodafone Group.

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