LONDON — European markets are set to ease slightly on Tuesday, tracking risk-off sentiment globally as investors gauge whether last month’s rally should continue further.
Britain’s FTSE 100 is seen around 20 points lower at 7,393, Germany’s DAX is expected to drop around 67 points to 13,413 and France’s CAC 40 is expected to drop around 24 points to 6,413.
The pan-European Stoxx 600 ended Monday’s session fractionally lower to start August after closing its best month since November 2020.
Asia-Pacific shares fell overnight, with mainland Chinese markets leading losses as geopolitical tensions rose over a possible visit by US House Speaker Nancy Pelosi to Taiwan.
U.S. stock futures fell in early premarket trading after slipping lower at the start of the month, with not all investors convinced the pain for risk assets is truly over.
The dollar and U.S. long-term bond yields fell on concerns over Pelosi’s visit to Taiwan and weak data from the United States, where data on Monday showed manufacturing activity weakened in June, fueling fears of a global recession.
Oil also fell as manufacturing data showed weakness in several major economies.
Earnings remain a key driver of individual stock price movement. BP, Ferrari, Maersk and Uniper were among the major European companies to report before the bell on Tuesday.
The first Ukrainian ship — bound for Lebanon — carrying grain across the Black Sea since the Russian invasion left the port of Odessa on Monday under a safe transit deal, offering some hope in the face of a worsening global food crisis.
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