LONDON – European stocks are expected to open higher on Tuesday as positive new-year momentum continues in global markets.
UK FTSE The index is seen opening 18 points higher at 7,434, Germany’s DAX 7 points higher at 16,050, of France CAC 40 up 15 points at 7,244 and in Italy FTSE MIB 126 points higher at 27,690, according to data from IG.
European stocks started 2022 with a bang on Monday, with most of the major regional indexes rallying on the first trading day of the new year.
However, there is still much uncertainty surrounding the Covid-19 pandemic with many countries around the world reimposing restrictions or lockdowns to prevent the spread of the highly contagious omicron variant. Inflation and monetary policy will be key themes for 2022, when investors expect the US Federal Reserve to raise interest rates next year to help cool the price increase for consumers.
US stock futures steady in overnight trade on Monday after the Dow Jones Industrial Average and S&P 500 set new records to close on the first trading day of 2022.
Meanwhile, Shares in Asia-Pacific were mixed on Tuesday, as data showed growth in Chinese factory activity in December.
Investors are eyeing stocks that are heavily indebted China Evergrande Group, briefly rallied more than 6% after resuming trading after a pause on Monday before giving up some of those gains. Evergrande announced on Tuesday that it has seen a value of 443.02 billion yuan (about 67.67 billion USD) in real estate sales contracts in 2021 – down more than 30% from the figure of 2020.
Released data includes preliminary French inflation figures for December, Germany’s unemployment rate for December and the latest Portuguese consumer confidence data.
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– Maggie Fitzgerald and Eustance Huang of CNBC contributed to this market report.
