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Investing.com – European stock markets are seen opening lower Friday, with doubts again growing that a post-Brexit trade deal between the U.K. and the European Union can be agreed.
At 2:05 AM ET (0705 GMT), the DAX futures contract in Germany traded 0.3% lower, CAC 40 futures in France dropped 0.4% and the FTSE 100 futures contract in the U.K. fell 0.9%.
European Commission President Ursula von der Leyen said late Thursday that “big differences” remain between the two sides, particularly on fishing, and that “bridging them will be very challenging.”
A spokesman for U.K. Prime Minister Boris Johnson also warned it was “very likely” there would be no agreement unless the bloc changed its position “substantially”.
Talks are progressing behind the scenes, and such negative language could be expected as a negotiating tactic, but time is running out for the two sides to agree a deal to cover around $1 trillion in annual trade at risk of facing tariffs and quotas at the end of the year.
This potential disruption to the European economy as a whole comes as the region continues to suffer from the effects of the Covid-19 pandemic.
Germany has entered a hard lockdown, closing schools and non-essential businesses, Switzerland is considering shutting restaurants for a month, French President Emmanuel Macron has tested positive for the virus, while England has increased restrictions for millions and a new lockdown in Northern Ireland will begin the day after Christmas.
That said, there was some positive news from across the Atlantic. An advisory panel recommended the approval of Moderna (NASDAQ:MRNA)’s Covid-19 drug late Thursday, clearing the way for a second vaccine to enter the fight against the pandemic.
Additionally, negotiations over a new coronavirus-relief spending package continued Thursday, with Senate Majority Leader Mitch McConnell saying a bipartisan deal “appears to be close at hand”.
Turning to economic data, U.K. retail sales fell sharply in November as virus restrictions hit, dropping 3.8% on the month, but the main focus will be on the German Ifo Business Climate index later in the session.
In corporate news, EssilorLuxottica (PA:ESLX) has begun the search for a new CEO after difficulties with the executive power sharing arrangement put in place when the company was created by a merger of France’s Essilor and Italy’s Luxottica in 2018.
Oil prices slipped, retreating from the nine-month highs seen the previous session as traders waited for Congress to approve a new Covid-19 relief package.
U.S. crude futures traded 0.3% lower at $48.20 a barrel, while the international benchmark Brent contract fell 0.5% to $51.25. Both benchmarks hit their highest levels since early March on Thursday.
Elsewhere, gold futures fell 0.1% to $1,887.70/oz, while EUR/USD traded 0.1% lower at 1.2251.
