European stocks are expected to open lower on Tuesday as investors anticipate eurozone growth and employment data for the first quarter, and remain focused on concerns about rising inflation.
London’s FTSE would open 8 points down to 7,072, the German DAX 33 points down to 15,657, the French CAC 40 2 points to 6,544 and the Italian FTSE MIB 1 point to 25,784, according to IG.
Investors in Europe will keep an eye on data releases on Tuesday, including the euro area’s revised gross domestic product (GDP) and employment figures for the first quarter.
Globally, investors around the world remain focused on Thursday’s release of key US inflation data. In April, the Consumer Price Index (CPI) rose 4.2% from the previous year, the fastest increase since 2008. Economists expect the CPI to rise 4.7% in May from the previous year, according to Dow Jones.
If Thursday’s data shows prices continue to rise in May, traders fear the Federal Reserve will pull out of its loose policies.
Looking at other global markets overnight, US equity futures remained stable in trading overnight after the Dow Jones and S&P 500 each started the week down.
Asia-Pacific stocks were mixed on Tuesday as investors reacted to the release of revised first-quarter GDP figures for Japan which showed the Japanese economy had contracted 3.9% in the first quarter, an improvement by compared to the initial estimate of a 5.1% contraction. Gross domestic product revised from economists’ median forecast in a Reuters poll for a 4.8% contraction.
Other data released in Europe on Tuesday includes the German ZEW Economic Sentiment Survey for June, German industrial production for April and UK retail sales data for May. There are no significant income reports.
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