European markets set for lower open as Ukraine-Russia war weighs on sentiment

Key Points

• European stocks are expected to open lower on Tuesday as global market sentiment is hit by Russia’s ongoing invasion of Ukraine.
• The U.K.’s FTSE index is seen opening 33 points lower at 7,162, Germany’s DAX 70 points lower at 13,723, France’s CAC 40 down 36 points at 6,342 and Italy’s FTSE MIB 153 points lower at 22,632, according to data from IG.

LONDON — European stocks are expected to open lower on Tuesday as global market sentiment is hit by Russia’s ongoing invasion of Ukraine.

The U.K.’s FTSE index is seen opening 33 points lower at 7,162, Germany’s DAX 70 points lower at 13,723, France’s CAC 40 down 36 points at 6,342 and Italy’s FTSE MIB 153 points lower at 22,632, according to data from IG.

Global markets continue to be buffeted by events in Europe as Russia’s war on Ukraine continues to wreak death and destruction on the country.

Talks between Russian and Ukrainian officials took place on Monday in a bid to establish a solid ceasefire and find room for any compromise between Russia and Ukraine’s demands. But like earlier attempts the fourth round of discussions ended with little progress being made. Talks resume on Tuesday, however.

The U.S. Federal Reserve is also in focus this week as it is expected to raise its target fed funds rate by a quarter percentage point from zero at the end of its two-day meeting which starts on Tuesday.

Investors are also awaiting the central bank’s new forecasts for rates, inflation and the economy, given the uncertainty from escalated geopolitical tensions.

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U.S. stock futures rose slightly on Monday night as investors continue to monitor developments in the Russia-Ukraine conflict and get ready for a key Federal Reserve policy decision.

Elsewhere, shares in China lagged among Asia-Pacific markets on Tuesday, though some losses were pared following the release of Chinese economic data that was far above expectations. Still, China is currently facing its worst Covid-19 outbreak since the height of the pandemic in 2020, with major cities including Shenzhen limiting business activity.

Earnings come from Volkswagen, RWE and H&M on Tuesday. Data releases include the latest ZEW Economic Sentiment Index from Germany.

Source : CNBC