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European markets set for negative open amid global sell-off

Soegeefx AppsEU MarketEuropean markets set for negative open amid global sell-off

Key Points

  • European stocks are expected to open lower on Tuesday amid a global market sell-off, prompted mainly by concerns over inflation and rising interest rates — and the potential for a global recession.
  • The lower open expected in Europe comes after regional markets fell to two-month lows on Monday as global investors fled risk assets en masse owing to fears over inflation.

LONDON — European stocks are expected to open lower on Tuesday amid a global market sell-off, prompted mainly by concerns over inflation and rising interest rates — and the potential for a global recession.

The U.K.’s FTSE index is seen opening 10 points lower at 7,210, Germany’s DAX 1 point lower at 6,086, France’s CAC 40 down 16 points at 13,404 and Italy’s FTSE MIB down 64 points at 22,469, according to data from IG.

The lower open expected in Europe comes after regional markets fell to two-month lows on Monday as global investors fled risk assets en masse owing to fears over inflation.

The sell-off is not confined to Europe, with U.S. stocks also falling sharply, pushing the S&P 500 to breach the 4,000 level for the first time in more than a year as the market sell-off continued.

Monday’s moves came as Wall Street experienced an erratic last week, with eye-popping day-to-day swings as investors weighed the prospects of rising interest rates against the potential of slower economic growth.

Overnight, most Asia-Pacific markets fell on Tuesday after the heavy losses overnight on Wall Street, while U.S. stock futures swung between positive and negative territory.

The war in Ukraine remains another source of market tension. Russia’s President Vladimir Putin attempted to justify his unprecedented invasion of Ukraine on Monday, which was “Victory Day” in Russia — one of the most important events on the country’s national calendar, marking the Soviet defeat of Nazi Germany.

The West was “preparing for the invasion of our land, including Crimea,” Putin said without providing evidence, according to a Reuters translation. He added that NATO was creating threats at Russia’s borders.

Earnings Tuesday come from Bayer, Munich Re, Pirelli and Salvatore Ferragamo.

On the data front, Germany’s ZEW institute is set to publish its economic sentiment index for May.

Source : CNBC

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