European stocks are seen opening narrowly mixed on Tuesday, as investors keep an eye on the region’s worsening energy crisis and look ahead to this week’s ECB meeting for clues about the trajectory of growth and interest-rate moves going forward.
Asian markets were mostly lower in cautious trade, though Chinese shares rose sharply after China vowed to accelerate its stimulus rollout in the third quarter.
Earlier in the day, Australia’s central bank raised its cash rate to the highest level since 2015, saying it remained committed to returning inflation to the 2-3 percent range over time while keeping the economy on an even keel.
A pullback in the dollar helped lift gold prices, while oil prices fell slightly after climbing 3 percent overnight spurred by an OPEC+ decision to cut output by 100,000 barrels per day – seen as a largely symbolic move to stem the recent price slide.
Meanwhile, EU foreign policy chief Josep Borrell said he was less hopeful about reaching an agreement soon to revive a nuclear deal with Iran.
In economic releases, factory orders and construction Purchasing Managers’ survey results from Germany are due later in the session, headlining a light day for the European economic news.
The U.S. markets were closed Monday on account of Labour Day holiday.
European stocks tumbled on Monday and the euro fell sharply, as weak regional data and surging gas prices following Russia’s decision to extend a halt on gas flows through the Nord Stream 1 gas pipeline raised prospects for a recession.
The pan European Stoxx 600 ended 0.6 percent lower, recouping some of its earlier losses.
The German DAX fell 2.2 percent and France’s CAC 40 index shed 1.2 percent while the U.K.’s FTSE 100 edged up 0.1 percent as Liz Truss won the race to become the next prime minister of Britain.
Source: Read Full Article