Investors’ worries about the region’s economic outlook and the ongoing efforts of central banks to combat high inflation are expected to cause the opening of the European stock markets on Tuesday to be slightly lower.
The DAX futures contract in Germany fell 0.3%. The CAC 40 futures contract in France fell 0.211%. Moreover, the FTSE 100 futures contract in the United Kingdom fell 0.2%.
The risk-off sentiment prevails globally on Tuesday, with European equities set to follow Wall Street’s negative close after the United States services sector unexpectedly accelerated in November.
According to data released on Monday, retail sales decreased as consumers cut back on spending in the face of rising inflation. Business activity in the Eurozone declined for the fifth consecutive month in November. This trend suggests that the region’s economy will enter a recession next year.
According to data released Tuesday, industrial orders in Germany, the Eurozone’s largest economy, increased 1by 0.8% in October. It was higher than expected and represented an improvement over the previous month’s revised 2.9% drop, but there is little to celebrate.
Porsche AG, which will join the German blue-chip DAX index on December 19, just over two months after its market debut, will be in the spotlight in the corporate sector.
The Hong Kong stock market rose sharply again on Monday, one session after snapping a three-day winning streak in which it had risen nearly 1,450 points or 7.8 percent. The Hang Seng Index is now just below the 19,520-point mark, though it should give back much of its gains on Tuesday. The global outlook for Asian markets is bleak due to concerns about the economy and the outlook for interest rates. The European markets were mixed. The US bourses were firmly in the red, with Asian markets expected to follow suit.
The Hang Seng finished the day with huge gains, with support from all sectors, particularly technology and real estate. The index finished the day up 842.94 points, or 4.51 percent, at 19,518.29 after trading between 19,035.14 and 19,539.60. The Dow fell 482.78 points, or 1.40 percent, to 33,947.10, while the NASDAQ fell 221.56 points, or 1.93 percent, to 11,239.94, and the S&P 500 72.86 points, or 1.79 percent, to 3,998.84.
Following last Friday’s stronger-than-expected employment data, Wall Street’s weakness reflected lingering uncertainty about the outlook for interest rates.