European stocks were expected to open in negative territory on Wednesday as analysts and hawks kept at eye on geopolitical tensions between China and India, and North and South Korea in the midst of a rise in the infections in Asia and the United States. London’s FTSE saw an opening of 16 points at 6,227, while Germany’s DAX was expected to open 69 points lower at 12,251 while France’s CAC 40 is expected to open lower than 30 points at 4,929 and Italy’s FTSE MIB opened 39 points lower at 19,527.
European trends followed geopolitical sentiments where stocks trade lower following warnings from the International Monetary Fund on flaring concerns in neighboring countries and Asia. Tensions blew up between North and South Korea as North Korea blew a liaison office associated with the latter. Following which, South Korea’s president would no longer accept unreasonable behavior by North Korea.
Furthermore, Indian and Chinese troops clashes in a latest series of sparring rounds in disputed regions in the Himalayan area where a skirmish broke out between the two sides which resulted in casualties from both sides in more than four decades. Investors in Europe are also keeping a close eye on the latest coronavirus developments. The number of infected people around the world reached 8 million on Tuesday.
The World Health Organization warned that while the virus has slowed down in Europe, it is gradually picking up speed in other parts of the world except parts of Africa and America. A new cluster of cases in Beijing is also being closely watched.
However, some news came on Tuesday after Oxford University scientists announced that Dexamethasone, a cheap and widely available steroid was proven to save lives when given to patients with severe cases of COVID-19.