European Shares Seen Up As Inflation Worries Ease

European stocks are seen opening a tad higher on Tuesday as oil continued to slid on fears of lower fuel demand, helping ease inflation fears.

Crude oil prices fell over 1 percent in Asian trading after having lost about 7 percent in the U.S. session on concerns that a virus flare-up in China will weigh on global demand.

Asian stocks were mostly higher after the Bank of Japan vowed to defend a key yield cap, offering to buy unlimited government bonds for the first four days of this week in the face of mounting inflationary pressures.

Meanwhile, China’s manufacturing hub of Shenzhen is starting to get back on its feet after being hit by shutdowns in a recent Covid-19 outbreak.

The Japanese yen hovered near a seven-year low against the dollar while gold traded flat on higher U.S. yields.

In economic releases, mortgage approvals data from the U.K. and consumer confidence figures from Germany and France are due later in the session, headlining a light day for the European economic news.

The German GfK forward-looking consumer sentiment index is forecast to fall to -14.0 in April from -8.1 in March.

U.S. stocks rose overnight on hopes of progress in Russia-Ukraine peace talks.

The Dow inched up 0.3 percent, the S&P 500 gained 0.7 percent to extend gains for a third straight session and the tech-heavy Nasdaq Composite added 1.3 percent.

European stocks also ended in positive territory Monday despite an ongoing sell-off in bond markets and concerns over Shanghai going into lockdown.

The pan European Stoxx 600 edged up 0.1 percent. The German DAX rose 0.8 percent and France’s CAC 40 advanced half a percent while the U.K.’s FTSE 100 slipped 0.1 percent.

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