European Market Open: FTSE 100 to rise on hopes of faster UK growth

European markets are set to rise this morning as confidence grows about the progress being made with vaccines within the UK and Europe, oil and gold are on the move because the crisis in India deteriorates, and therefore the lira slides toward an rock bottom against the dollar.
FTSE 100 set to open higher
The FTSE 100 is named to open 0.2% higher this morning at 6932.0 after ending last week at 6917.4.

European markets to follow higher
The Euro STOXX Index is about to open 0.2% higher today at 4013.5 from 4005.6 at the top of play last week.

France’s CAC 40 is named to open 0.1% higher at 6262.1 from 6256.5 at the last close.

Germany’s DAX is about to open 0.2% higher at 15282.5 from 15256.4 when markets closed on Friday.

Goldman Sachs forecasts faster growth for the united kingdom
Britain’s economy is predicted to grow by a ‘striking’ 7.8% in 2021, consistent with a note released by Goldman Sachs yesterday, outpacing the US as its vaccination programme progresses.

The bank said UK growth was ‘above our expectations for the US’. The forecast also sits above the 5.3% estimate by the International fund , but the united kingdom has now vaccinated over half its adult population since that was made. Goldman Sachs highlighted the stronger-than-expected flash PMI and retail sales numbers for April.

The deputy governor of the Bank of England, Ben Broadbent, said on Saturday that he expected ‘vary rapid climb a minimum of over subsequent few quarters’ as restrictions are lifted.

Pressure builds for greater transparency over Covid-19 vaccines
Lawmakers within the UK are calling on the govt to publish all communications it’s had with pharmaceutical firms to know if lobbying has influenced its opposition to a waiver of property rights on Covid-19 vaccines.

The US, UK and a couple of other countries have blocked negotiations at the planet Trade Organisation, where over 100 countries have supported a proposal that might prevent pharmaceutical firms from owning IP rights over their vaccines to make sure developing countries can produce the jabs they have .

A cross-party group of UK lawmakers are now calling for prime minister Boris Johnson, ministers and senior civil servants to publish all communications with pharmaceutical firms to enhance transparency.

EU set to welcome vaccinated Americans this summer
The European Union will allow Americans that are vaccinated against the coronavirus to visit Europe by this summer.

European Commission president Ursula von der Leyen said the bloc will unconditionally allow all Americans that are vaccinated with jabs that are approved by the ecu Medicines Agency to travel across the region, but didn’t provide a selected timeframe when travel could restart.

The news comes because the head of the EU’s vaccine task force said the bloc hoped to immunise its own population by having 70% of adults vaccinated by mid-July.

Italy reaches affect EU on recovery plan
Italy and therefore the EU have reached agreement over the country’s recovery plan, prime minister Mario Draghi told his cabinet over the weekend, putting it on track to be approved by the bloc before the top of April.

Italy is planning on spending quite EUR220 billion in EU national funds to assist its economy recover after being ravaged by the coronavirus, consistent with Reuters. Draghi said there have been some ‘marginal adjustments’ to be made but that he had been given the green light.

Forex: Lira and dollar on the move
USD/TRY edged on the brink of an all-time high on Monday because the slide within the lira continued over the weekend. This was driven by concerns over US-Turkey relations and by comments from the country’s new financial institution boss, who said monetary policy would remain tight for now as hiking interest rates would send a nasty message to the economy. USD/TRY was trading at 8.43138 this morning compared to eight .40906 on Friday.

Meanwhile, the dollar lost ground against the likes of the euro and sterling before the US Federal Reserve System meeting later in the week . Speculation is building that chairman Jerome Powell will shun the thought of tapering bond purchases because it is just too soon to be discussing easing monetary policy despite the progress being made with the vaccination programme and an improving labour market.

GBP/USD was up 0.2% this morning at 1.39008 from 1.38796 when stock markets closed on Friday, while EUR/USD was up 0.1% at 1.21086 from 1.20974.

Commodities: Oil dips and gold rises as crisis in India worsens
Brent traded at $65.26 a barrel this morning after ending last week at $65.74 a barrel, while WTI dipped to $61.75 from $62.14. the marginally softer prices come as improving sentiment over the recovery for oil this year as vaccination programmes progress has been dented by the deteriorating situation in India, which set a replacement global record for daily coronavirus cases over the weekend.

Gold prices were trading 0.3% higher this morning at $1780.8 from $1776.4 per ounce at the top of play on Friday. Prices were boosted by the weaker dollar and increased demand before the US Federal Reserve’s meeting later in the week .

Economic calendar: key events to observe out for today
The economic calendar kicks off in Germany today, with IFO business sentiment data due out at 0900 BST. the ecu Central Bank’s Fabio Panetta is thanks to make a speech at 1300 BST, followed by Philip Lane at 1400 BST.