European Shares Seen Up At Open As US Futures Rebound
European stocks are likely to open higher on Tuesday as U.S. stock futures climbed after Monday’s rout.
Gold hovered near a four-week low, pressured by a strong dollar and elevated U.S. Treasury yields ahead of the Fed announcement on Wednesday, with Goldman Sachs altering its own expectation of a 50-basis point move to 75.
As recession worries grow, the messaging around future guidance is going to be key to determine market reactions.
Asian stocks followed Wall Street lower as China’s resumption of COVID-19 curbs such as partial lockdowns in Shanghai added to growth worries.
Oil prices were little changed in Asian trade despite recession fears and China’s COVID jitters.
The day’s economic calendar remains light, with unemployment data from the U.K. and economic confidence figures from Germany due later in the day.
Across the Atlantic, a report on producer price inflation may attract investor attention.
U.S. stocks plunged into a bear market on Monday and government bond yields soared as investors continued to fret over stubbornly high inflation and the prospect of aggressive monetary tightening by central banks.
The Dow tumbled 2.8 percent, the tech-heavy Nasdaq Composite plummeted 4.7 percent and the S&P 500 gave up 3.9 percent to reach their lowest closing levels in over a year.
European stocks also sank on Monday on disappointing U.K. growth data and news of a “ferocious” COVID-19 outbreak in Beijing’s most populous district of Chaoyang.
The pan European Stoxx 600 tumbled 2.4 percent to its lowest since March 7. The German DAX lost 2.4 percent, France’s CAC 40 index declined 2.7 percent and the U.K.’s FTSE 100 fell 1.5 percent.
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