European Shares Seen Flat To Lower As China Data Disappoints

(RTTNews) - European stocks look set to open broadly lower on Tuesday as investors react to disappointing Chinese data and await more news regarding the U.S. debt ceiling negotiations.

China's industrial production and retail sales numbers for April missed expectations but still rose at a steady clip from the prior month, pointing to an uneven economic recovery and fueling the debate over the need for additional stimulus.

Asian markets traded mostly higher while the dollar weakened as investors await outcome of the ongoing $31.4 trillion U.S. debt ceiling negotiations.

Gold prices were muted in lackluster trade while oil rose for a second straight session as wildfires in Canada fueled supply worries and the U.S. started soliciting bids for crude to fill its depleted strategic reserves.

Unemployment data from the U.K. and economic sentiment figures from Germany are due later in the session, headlining a busy day for the European economic news.

Across the Atlantic, traders are likely to keep an eye on reports on retail sales and industrial production.

U.S. stocks ended mostly higher overnight as reports of progress on debt ceiling talks outweighed data showing a substantial downturn in regional manufacturing activity in May.

Both President Joe Biden and Treasury Secretary Janet Yellen expressed optimism about an eventual agreement on raising the U.S. debt.

The Dow inched up 0.1 percent to snap a five-session losing streak and the tech-heavy Nasdaq Composite climbed 0.7 percent to reach its best closing level in well over eight months while the S&P 500 added 0.3 percent.

European stocks eked out marginal gains on Monday after the European Commission upgraded the continent's 2023-24 growth outlook.

The pan European STOXX 600 gained 0.3 percent. The German DAX and France's CAC 40 edged up marginally while the U.K.'s FTSE 100 rose 0.3 percent.