European markets head for negative open as global investor confidence dips

Key Points

• European stocks are expected to open in negative territory on Tuesday as global investor confidence sees another decline.
• Investors stateside will be looking closely at more data later today, including June consumer confidence and April home prices, to gauge the health of the economy.

LONDON — European stocks are expected to open in negative territory on Tuesday as global investor confidence sees another dip.

The U.K.’s FTSE index is seen opening 20 points lower at 7,250, Germany’s DAX down 70 points at 13,139, France’s CAC 40 down 43 points at 6,021, and Italy’s FTSE MIB down 70 points at 21,733, according to data from IG.

The lower open expected in Europe comes against a backdrop of choppy trade elsewhere. Shares in the Asia-Pacific region were mixed on Tuesday as investors weigh economic concerns. U.S. stock futures were little changed early on Tuesday following losses in the previous session.

Investors stateside will be looking closely at more data later today, including June consumer confidence and April home prices, to gauge the health of the economy.

Fears of a recession have increased lately as the Federal Reserve tries to combat surging inflation with aggressive rate hikes.

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In other news, the Group of Seven summit in Germany will conclude today. The meeting of leaders from the world’s seven most wealthy, industrialized nations saw the group re-affirm their support for Ukraine, saying they’ll support the country for “as long as it takes.”

In Spain on Tuesday, the latest NATO summit opens with the war in Ukraine top of the agenda. The alliance’s Secretary-General Jens Stoltenberg said Monday that NATO will greatly increase its high-readiness force, raising the number of troops from 40,000 to 300,000.

There are no earnings in Europe on Tuesday. Data releases include GfK German consumer confidence figures.

Source : CNBC