European equities to open muted after global sell off amid recovery concerns
The UK FTSE 100 is expected to open 4 points lower to 7,025, the French CAC 40 would open down 4 points to 6,383 points and the German DAX is expected to rise 1 point to 15,402, according to IG.
The pan-European Stoxx 600 slipped nearly 2% on Thursday, with retailers falling 3.2% to cause losses as all sectors and major exchanges slipped deep into negative territory.
Europe’s plunge reflected negative sentiment in Asia and the United States. Investors also fled Thursday to the perceived safety of US government bonds, pushing the 10-year Treasury yield to its lowest level since late February.
Shares in Asia-Pacific fell on Friday amid renewed concerns about Covid. In Japan, the Nikkei 225 led losses among the region’s major markets, as it fell 1.7% in afternoon trading, while the Topix index lost 1.48%.
Olympics organizers will ban spectators from upcoming summer games in Tokyo, after a state of emergency in the city was declared by Japan on Thursday as the country sees an increase in Covid-19 cases. The state of emergency will last until August 22.
Back in Europe, G-20 finance ministers and central bank governors meet in Venice, Italy, to discuss taxation and economic recovery.
On the data side, there will be a flash GDP figure in May for the UK and Bank of England Governor Andrew Bailey will speak at an OECD Global Productivity Forum .
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– CNBC’s Eustance Huang contributed to this report.