BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening lower on Tuesday amid lingering uncertainties over the U.S.-China relations and concerns about the pace of economic recovery.
Virus worries persist, with health officials fearing that a weekend of picnics, pool parties and beach outings for the Independence Day holiday could fuel the worsening coronavirus outbreak in the United States.
Confirmed cases are on the rise in 41 out of 50 states, plus the District of Columbia, as the U.S. death toll from the virus climbed past 130,000.
The mayor of Miami-Dade County has ordered a rollback of some reopening measures as Florida continues to see a surge in Covid-19 cases.
The United States is still 'knee-deep' in the first wave of the illnesses, having never gotten the case number as low as planned, U.S. health official Anthony Fauci said.
U.S. economic recovery may be 'leveling off' as activity could be dampened amid a recent surge in coronavirus infections, Raphael Bostic, president of the Federal Reserve Bank of Atlanta, said in an interview to the Financial Times.
Asian markets are trading mixed and oil prices fell, while gold inched higher on safe-haven demand.
U.S. stocks rallied overnight on the prospect of an improving China and expectations of more stimulus from the world's central banks.
Data showing a substantial turnaround in U.S. service sector activity in June also added to optimism about an economic recovery.
The tech-heavy Nasdaq Composite climbed 2.2 percent to reach another record high despite an increase in coronavirus cases in dozens of states. The Dow Jones Industrial Average rallied 1.8 percent and the S&P 500 added 1.6 percent.
European markets posted strong gains on Monday after Chinese shares skyrocketed amid positive commentary on the market from state media.
Some upbeat economic data from the euro area as well as last week's strong U.S. jobs data also boosted sentiment.
The pan European Stoxx 600 advanced 1.6 percent. The German DAX rose 1.6 percent, France's CAC 40 index gained 1.5 percent and the U.K.'s FTSE 100 jumped 2.1 percent.
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