Today on November 16th the European Stocks seem to have opened higher, as strong economic data from Japan and China incited optimism of a global recovery even despite the increasing tension on health systems in Europe and the U.S. The DAX futures contract in Germany traded 0.6% higher, but CAC 40 futures in France climbed 1.1% and the FTSE 100 futures contract in the U.K. rose 0.4%. On Monday it also showed that Japan’s economy bounced back strongly in the third quarter. It grew by 5% on the quarter, better than the 4.4% growth expected, and by an annualized 21.4%, pulling the world’s third-largest economy out of recession.
Industrial output numbers from China were positive, also giving signs that its retail sector was recovering.
Influential investment bank Morgan Stanley (NYSE:MS), in an outlook for 2021, suggested that investors overweight equities and corporate bonds, citing an expected “V-shaped” economic recovery, greater clarity on Covid-19 vaccines and continued policy support. Still, the coronavirus pandemic continues to cause pain throughout much of the northern hemisphere, with the number of coronavirus cases in the United States exceeding the 11 million mark on Sunday.
Peter Altmaier the German economy minister said, Germany must live with “considerable restrictions” against the spread of Covid-19 for at least four to five months.”
On the other hand, British Prime Minister Boris Johnson is self-isolating after coming into contact with someone who tested positive for Covid-19. Earlier this year he was admitted to intensive care , while recovering from the virus.
In corporate news, BBVA is set for gains after Reuters reported that PNC Financial is nearing an all-cash deal to buy the U.S. business of the Spanish lender for more than $10 billion.
Oil prices plunged higher today, as traders look ahead to the upcoming meeting of the world’s top producers for a further extension of supply curbs to counter the hit to demand from the surge in coronavirus infections. The Organization of the Petroleum Exporting Countries and their allies, including Russia, also known as OPEC+, has been cutting production by about 7.7 million barrels per day to support prices. It had planned to increase output by 2 million barrels per day from January, but this move is not likely to happen.