European stocks are likely to open lower on Wednesday as rising Covid-19 cases in the United States and Europe has raised the threat of renewed restrictions and regional lockdowns.

With more shutdowns looming and new virus cases spreading quickly in many parts of the world, huge challenges remain before a coronavirus vaccine can be rolled out and people begin to receive it.

The dollar held steady after overnight data showed U.S. retail sales climbed in October at the slowest pace in six months.

Federal Reserve Chair Jerome Powell said Tuesday the American economy has a “long way to go” before it returns to pre-pandemic levels and that the Fed is committed to supporting a recovery.

On the stimulus front, Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer on Tuesday asked Senate Majority Leader Mitch McConnell to resume negotiations, while McConnell reportedly stuck to his insistence on a targeted package.

U.S.-China tension also remain on investors’ radar. According to a Bloomberg report, the U.S. Securities and Exchange Commission is pushing ahead with a plan that threatens to kick Chinese companies off U.S. stock exchanges.

Asian markets are trading mixed and gold inched lower while oil traded flat after a bigger-than-expected build in U.S. crude stockpiles. The British pound held gains as traders hoped for a Brexit trade deal breakthrough as early next week.

Consumer and producer price figures from the U.K. and new car registration data from Europe are due later in the session, headlining a light day for the European economic news.

Overnight, U.S. stocks fell as retail sales data disappointed and more states imposed restrictions to tamp down an unrelenting surge in Covid-19 cases.

The S&P 500 slid half a percent and the Dow Jones Industrial Average shed 0.6 percent after closing at record highs in the previous session. The tech-heavy Nasdaq Composite eased 0.2 percent.

European stocks came off from multi-month highs on Tuesday as tighter coronavirus-driven restrictions across the continent overshadowed more positive news related to coronavirus vaccines.

The pan European Stoxx 600 slipped 0.2 percent. The German DAX finished marginally lower and the U.K.’s FTSE 100 gave up 0.9 percent amid a broadly stronger pound, while France’s CAC 40 index edged up 0.2 percent.

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