Peter Nurse 

Investing.com – European stock markets will open largely unchanged Tuesday as investors digest a crucial meeting between U.S. President Joe Biden, Chinese leader Xi Jinping and rising Covid-19 case numbers in the region.

At 02:05 ET (00705 GMT), Germany’s contract was trading 0.1% higher while France fell 0.1%. The U.K contract was relatively unchanged.

The major equity indices in Europe received a largely positive handover from Asia, with the in Hong Kong up over 1%, as the leaders of the U.S. and China met virtually in the closest communication between the two countries’ leaders since Biden took office in January.

There remain a number of points of tension between the world’s two largest economies, but public statements following the meeting prompted optimism that these can be smoothed out, benefiting riskier assets.

However, there are limited gains possible in Europe Tuesday due to the fact that Europe is once again at the center of the Covid epidemic. This has prompted some countries to follow the Netherlands’ lead and reinstate restrictions as a way to celebrate Christmas.

Tensions in Ukraine are also rising, as the U.S. warns that Russia has begun to mass troops along the border, and NATO states it will be ready to defend its sovereignty.   

Corporate news: Quarterly earnings are reported by Imperial Brands (OTC) Bouygues Vodafone (NASDAQ:) In data terms, the U.K. dropped to 4.3% in September from 4.5% a month earlier. While the October fell almost 15,000, this indicates that there has been no dramatic decline in labor market.

Later on in the session, the Eurozone’s third-quarter data will be made public.

Although crude oil prices rose Tuesday following recent losses they are expected to lose ground due to fears about increased demand after a spike in Covid-19, especially in Europe.

As supplies rise, fears of a falling demand are common. U.S. oil companies added oil and drilling rigs last week for the third consecutive week. This prompted attention to the earlier release of data on oil prices.

U.S. crude oil futures were trading 1% higher at $80.51 per barrel by 2:05 PM ET. The contract rose 1.3%, to $83.10. The overall contract fell last week for the third consecutive week.

The price of gold rose to $1,866.65/oz while the exchange rate was 0.1% lower at 1.1377