European stocks head for lower open as Ukraine war, inflation weigh on sentiment

Key Points

• European stocks are expected to open lower on Tuesday as investors continue to monitor the war in Ukraine and economic developments in the United States.
• Investors continue to watch the situation in Ukraine as ongoing peace talks between Moscow and Kyiv fail to make progress.
• On Monday, Ukraine refused to surrender the port city of Mariupol to Russian forces following an ultimatum from Moscow.

LONDON — European stocks are expected to open lower on Tuesday as investors continue to monitor the war in Ukraine and economic developments in the United States.

The U.K.’s FTSE index is seen opening 2 points lower at 7,448, Germany’s DAX 50 points lower at 14,303, France’s CAC 40 down 29 points at 6,554 and Italy’s FTSE MIB 29 points lower at 22,653, according to data from IG.

Investors continue to watch the situation in Ukraine as ongoing peace talks between Moscow and Kyiv fail to make progress. On Monday, Ukraine refused to surrender the port city of Mariupol to Russian forces following an ultimatum from Moscow.

President Volodymyr Zelenskyy told Eurovision News that ultimatums won’t work as trapped Ukrainians will “fight till the end.”

Stock picks and investing trends from CNBC Pro:

Goldman strategist names two sectors with ‘incredibly cheap’ stocks after Fed rate hike

The Nasdaq is down more than 10% this year. Here are Wall Street’s top picks to buy the dip

Dan Niles predicts a recession — and picks stocks to weather the volatility ahead

U.S stock index futures were flat in overnight trading after Federal Reserve Chair Jerome Powell said the central bank is open to higher rate hikes to combat rising inflation.

Wall Street’s Monday trading session was volatile as Powell vowed to take “necessary steps” to curb inflation less than a week after the agency raised rates for the first time since 2018. Powell said “inflation is much too high” and added that rates could increase more than the previously approved 25 basis points if needed.

Shares in Asia-Pacific were mixed in Tuesday trade, as China Eastern Airlines shares fell after the carrier’s Boeing 737 passenger jet crashed in southern China on Monday.

Market watchers are also monitoring the omicron subvariant as it spreads across Europe along with one of the worst Covid-19 outbreaks in China since 2020.

There are no major data releases on Tuesday; earnings come from Kingfisher.

Source : CNBC