European stocks are expected to open lower on Tuesday as post-Brexit trade deal negotiations and the latest coronavirus developments continue to dominate market attention.
London’s FTSE is seen opening 31 points lower at 6,506, Germany’s DAX 36 points lower at 13,202, France’s CAC 40 down 20 points at 5,515 and Italy’s FTSE MIB 40 points lower at 21,681, according to IG.
Coronavirus developments are also weighing on market sentiment with Germany and the Netherlands announcing tighter restrictions over Christmas in a bid to curb a sharp rise in infections.
On Monday, the U.K. government announced that London is to move into England’s highest tier of Covid-19 restrictions. It cited increased infection rates that may be partly linked to a new variant of the coronavirus that could be spurring a rise in cases in southern England.
The Dow Jones Industrial Average and S&P 500 fell on Monday as fears of additional Covid-19 restrictions offset the optimism around a Covid vaccine rollout in the U.S.