European stocks set for positive open, defying market gloom elsewhere

  • European stocks are expected to open higher on Tuesday, defying gloomier sentiment seen among global markets at the start of the trading week.
  • Britain's FTSE is seen opening 51 points higher at 7,087, Germany's DAX up 80 points at 15,487, France's CAC 40 up 39 points at 6,403 and Italy's FTSE MIB 224 points higher at 24,845, according to IG.

LONDON – European stocks are expected to open higher on Tuesday, defying gloomier sentiment seen among global markets at the start of the trading week.

Britain's FTSE is seen opening 51 points higher at 7,087, Germany's DAX up 80 points at 15,487, France's CAC 40 up 39 points at 6,403 and Italy's FTSE MIB 224 points higher at 24,845, according to IG.

It indicates a more positive tone than on Monday when stocks closed lower as global investors weighed concerns over a rise in inflation and an increase in coronavirus cases, largely attributed to the spread of a variant that emerged in India.

A key focus in Europe on Tuesday will be an updated estimate of euro zone first-quarter gross domestic product (GDP). Flash first-quarter employment figures are also due for the region, as well as U.K. unemployment data for March.

U.S. stock index futures showed more lackluster sentiment overnight; Dow futures added 17 points, while contracts tied to the S&P 500 traded around the flatline. Nasdaq 100 futures were also little changed.

The moves in the overnight session came after lingering weakness in technology stocks led the major U.S. indexes lower on Monday.

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The coronavirus continues to weigh on market sentiment. On Monday, the World Health Organization warned that the global pandemic isn't over yet despite high Covid vaccination rates in some countries. In Asia, places such as Singapore and Taiwan have seen a recent resurgence in local infections, prompting authorities to tighten restrictions in a bid to stem the virus' spread.

Looking at trading in the Asia-Pacific region overnight, shares jumped in Tuesday morning trade, as investors reacted to the release of Japan's first quarter gross domestic data which showed the economy shrank at an annualized rate of 5.1% in January to March, government data showed Tuesday.

Earnings in Europe come from Engie, Homeserve, Imperial Brands and Vodafone on Tuesday.

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