European stocks brush off concerns over coronavirus; PMIs in focus

European stocks brush off concerns over coronavirus; PMIs in focus


European stocks opened higher Tuesday despite some concerns over the state of the U.S.-China trade deal, and a surge of coronavirus cases in the U.S. and elsewhere.

The pan-European Stoxx 600 added 0.6% in early trade, with financial services, industrials and tech stocks each climbing more than 1% as all sectors and major bourses entered positive territory.

European markets look set to follow their global counterparts Tuesday. The boost to stocks comes after White House trade advisor Peter Navarro clarified that the U.S.-China trade deal is not over, following an interview with Fox News in which he appeared to suggest otherwise, prompting U.S. stock futures to plunge.

Later, Navarro clarified that the U.S.-China trade deal is not over, saying in a statement that his comments had been “taken wildly out of context.”  “They had nothing at all to do with the Phase I trade deal, which continues in place,” he added.  President Donald Trump also tweeted that the existing trade deal remains in place. Stock futures recovered earlier losses following the comments.

Meanwhile, the coronavirus pandemic continues to be the main focus for investors as a number of states in the U.S.  continued to report a rise in new cases and hospitalizations. The World Health Organization has reported record rises in several countries in the last few days, and has denied claims that increased testing is the sole driver behind higher case numbers. 

In Europe, investors will be focusing on the latest indicator on the state of the euro zone economy when preliminary purchasing manager’s index (PMI) data for June is released at 9 a.m. London time.

CNBC’s Maggie Fitzgerald and Eustance Huang contributed to this report.



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