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Investing.com – European stock markets traded mixed Monday, with investors focusing on virus concerns and ongoing Brexit trade negotiations at the end of a positive month.
At 3:55 AM ET (0855 GMT), the DAX in Germany traded largely flat, the CAC 40 in France fell 0.4%, while the U.K.’s FTSE 100 index rose 0.3%.
Largely positive news surrounding potential vaccines to treat Covid-19 has resulted in strong recent gains in global stock markets. In Europe, the DAX has gained 15% this month, the FTSE 100 is up 14% and the CAC 40 over 20%.
However, a number of European countries are now facing public disquiet over the restrictions their governments have put in place to try and curb the spread of the Covid-19 virus ahead of the important Christmas period.
The number of infections is still much too high in most German regions and people must do more to reduce their contacts to slow the spread of the disease, German Economy Minister Peter Altmaier said on Monday.
Without the buy-in of the public, containing the spread will be very difficult.
Also of interest is the state of the discussions between Britain and the European Union over a Brexit trade deal. Talks between EU chief negotiator Michel Barnier and British chief negotiator David Frost continued through Sunday, and this has generated optimism that a deal is close.
“We really are now running out of time, this is the crucial week, we need to get a breakthrough,” U.K. Environment Secretary George Eustice said Monday.
In corporate news, HSBC (LON:HSBA) stock fell 1.4% after the Financial Times reported the banking giant is considering a complete exit from retail banking in the United States. HSBC’s U.S. arm has struggled for some time.
Indivior (LON:INDV) stock rose 7.4% after the drugmaker said it would “vigorously defend” Reckitt Benckiser ‘s (LON:RB) 1.07 billion pound ($1.43 billion) legal claim relating to their demerger agreement.
European Central Bank President Christine Lagarde is due to speak later Monday, while preliminary inflation data, primarily from Germany, are also due.
Oil prices slipped lower Monday, with traders cautious ahead of a meeting of most of the top crude producers to decide output levels in order to balance the market.
OPEC and its allies, a group known as OPEC+, are expected to maintain the current cap on supply at the formal two-day meeting that starts later Monday, rather than raising it in January by 2 million barrels a day as previously agreed. However, a panel of OPEC+ ministers couldn’t reach agreement in an informal online discussion on Sunday.
U.S. crude futures traded 1.5% lower at $44.87 a barrel, while the international benchmark Brent contract fell 1.7% to $47.42. Both benchmarks are still set for a rise of more than 25% in November, boosted by hopes for three promising coronavirus vaccines.
Elsewhere, gold futures fell 0.5% to $1,779.25/oz, dropping over 5% this month, while EUR/USD traded 0.2% higher at 1.1980.
