European Stocks Seen Opening Weak On Tuesday

(RTTNews) - European stock markets are likely to open negative on Tuesday tracking losses in Asian peers and overnight losses on Wall Street. Stronger-than-expected services activity data from the U.S. on Monday renewed fears of further tightening by the Fed, which eclipsed the positive sentiment generated by easing Covid curbs in China.

Renewed Fed jitters dragged the Wall Street lower on Monday, with the Nasdaq Composite shedding 1.9 percent to close at 11,239.94 and the Dow Jones Industrial Average dropping 1.4 percent to finish trading at 33,947.10.

The negative sentiment reverberated in the European markets too and by close of trading on Monday, France's CAC 40 shed 0.7 percent. Germany's DAX dropped 0.6 percent whereas the pan-European Stoxx 600 erased 0.4 percent. Switzerland's SMI edged down 0.03 percent. U.K.'s FTSE 100 however gained 0.2 percent.

Indications from the European stock futures portend a weak open on Tuesday. The FTSE 100 Futures (Dec) is currently trading 0.13 percent lower. The DAX Futures (Dec) is currently trading 0.2 percent lower. The CAC 40 Futures (Dec) had closed 0.9 percent lower on Monday.

American stock futures however point to a rebound after Monday's sell-off. The US 30 (DJIA) index is up 0.1 percent whereas the US500 (S&P 500) is up 0.07 percent.

Asian stock markets are trading mixed as Fed Jitters clash with the hopes of an easing in China's Covid curbs. Hong Kong's Hang Seng has declined 1.4 percent whereas South Korea's KOSPI is trading 0.71 percent lower. New Zealand's NZX 50, Australia's S&P ASX 200 and India's Nifty 50 have all lost 0.4 percent. China's Shanghai Composite is trading 0.2 percent lower. Japan's Nikkei 225 has however gained 0.3 percent.

Amidst the renewed Fed fears, the Dollar and the Dollar Index (DXY) - a measure of the Dollar's strength relative to six currencies - have increased from the flatline. DXY is currently at 105.35, gaining 0.06 percent. The EUR/USD pair edged up to 1.0492 whereas the GBP/USD pair is flat at 1.2189.

Despite the Dollar's mild rally, Gold Futures for February settlement has edged up 0.09 percent to trade at $1,782.95 per troy ounce.

The implementation of the sanctions on Russian seaborne crude oil triggered supply concerns causing both the crude oil benchmarks to rise more than half a percent. WTI Crude Futures for January settlement has increased to $77.31, whereas Brent Crude Futures for February settlement has risen to $83.10.

Germany awaits Factory Orders reading for the month of October as well as the S&P Global Construction PMI numbers for the month of November later in the day. U.K. is expecting the S&P Global/CIPS Construction PMI reading for the month of November on Tuesday.

Earnings updates are due from SSP Group, Victrex and Paragon Banking Group.