- European equities are expected to open in positive territory on Tuesday, with investors focusing on coronavirus developments, economic recovery and profits.
- London’s FTSE is seen opening 6 more points with 6,625, Germany’s DAX 12 points more with 13,977, France’s CAC 40 rising 9 points to 5,780 and Italy’s FTSE MIB 36 points more with 23,027 , according to the IG.
LONDON – European equities are expected to open in positive territory on Tuesday, with the investor’s focus on coronavirus development, economic recovery and profits.
London’s FTSE is seen opening 6 more points with 6,625, Germany’s DAX 12 points more with 13,977, France’s CAC 40 rising 9 points to 5,780 and Italy’s FTSE MIB 36 points more with 23,027 , according to the IG.
European markets seem ready to resist a more cautious trend observed in Asia and the USA., with investors in the former controlling technology stocks regionally after their counterparts fell overnight on Wall Street.
UK stocks may have more positive trades on Tuesday after the British government submitted proposals on Monday on how and when you plan to start removing coronavirus restrictions. The easing will be gradual, but the government plans to lift all restrictions by June 21.
HSBC shares will be watched on Tuesday after the bank reported full year earnings for 2020, which exceeded expectations and announced a dividend payment for the first time since the Covid-19 pandemic.
The bank said its pre-tax profit for 2020 fell 34% over the previous year, to $ 8.78 billion. This exceeded analysts’ expectations of $ 8.33 billion, according to estimates compiled by HSBC.
In the US, attention will be focused on Federal Reserve President Jerome Powell on Tuesday as he gives his semi-annual testimony about the economy before the Senate Banking Committee. Your comments on rates and inflation could determine the market direction for the week.
Sharp losses in technology stocks dragged the S&P 500 down during the US trading session on Monday, as a steady increase in bond yields hurt the appetite for growth stocks. Meanwhile, investors huddled in economically sensitive names to bet on a return.
On Monday, European Central Bank President Christine Lagarde said in a speech that the central bank is “closely monitoring the evolution of long-term nominal bond yields”. European sovereign bond yields declined in response to her comments.
The earnings come from Manchester United and IHG Hotels & Resorts on Tuesday. The data releases come from the UK, with a large amount of employment data owed. Italy releases industrial order data for December and final inflation data for the euro zone in January.
– CNBC’s Yen Nee Lee contributed to this market report.
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