European Shares Poised For Flat Open

European stocks may open largely unchanged on Tuesday after strong gains in the previous session.

Trade tensions remain in focus after U.S. Secretary of Health and Human Services Alex Azar delivered a sharp criticism of the World Health Organization (WHO) at the organization’s annual meeting Monday.

In an apparent reference to China, the original epicenter of the coronavirus, Azar said at least one member state made a mockery of their transparency obligations, with tremendous costs for the entire world.

The WHO bowed to calls from most of its member states to launch an independent probe into the response to the pandemic saying learning was important.

Chinese President Xi Jinping also backed the review of global health response to Covid-19, but said such an evaluation should happen only after the pandemic was over.

Asian markets rose on improved risk sentiment as economies in the region started to relax lockdown restrictions. Oil prices rose for a fourth straight session on hopes for a near-term economic recovery, while Treasury yields held near five-week highs.

Unemployment data from the U.K and ZEW economic confidence from Germany are due later in the session, headlining a light day for the European economic news.

U.S. stocks soared overnight after Moderna reported “positive” phase one results from the first human study of its experimental coronavirus vaccine.

The Dow Jones Industrial Average climbed 3.9 percent, the tech-heavy Nasdaq Composite surged 2.4 percent and the S&P 500 jumped 3.2 percent.

European markets also closed sharply higher on Monday as oil extended its rally, the latest data showed slowing virus growth and investors digested comments from Fed Chair Jerome Powell about the prospects for the U.S. economy to recover in the medium term.

The pan European Stoxx 600 jumped 4.1 percent. The German DAX spiked 5.7 percent, France’s CAC 30 index advanced 5.2 percent and the U.K.’s FTSE 100 added 4.3 percent.

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