European stocks are likely to open on a mixed note on Tuesday after climbing to a four-month high in the previous session. Investors remain cautiously optimistic after yields in Spain and Italy inched lower and Germany backed a European Central Bank bond-buying plan.
Asian markets are posting modest gains and the Australian dollar is gaining ground against its major counterparts after the Reserve Bank of Australia decided to retain its benchmark cash rate unchanged at 3.5 percent for a second consecutive rate-setting meeting, in line with economists' forecast. While economic growth in Australia is set to remain close to trend, global outlook has become more subdued than was the case a few months ago, Central bank Governor Glenn Stevens said in a statement.
Investors now await a raft of Chinese data due later this week and the outcome of Bank of Japan's policy meeting that starts tomorrow amid speculation that the central bank will refrain from expanding monetary easing. The euro steadied after hitting a one-month high in the previous session, while commodities are subdued.
In economic releases, retail sales in the United Kingdom rose unexpectedly in July as warm weather and Olympics boosted sales of food and drinks, a report from the British Retail Consortium revealed. Retail sales rose 0.1 percent on a like-for-like basis annually in the month, while overall retail sales, which include those at newly opened stores, were up 2.0 percent year-over-year.
Factory orders from Germany and industrial production from the U.K. are the other statistical reports due in the European session.
In corporate news, British banking giant Standard Chartered Plc may lose its license to operate in New York city as well as its U.S. dollar clearing license, after a U.S. regulator accused its unit of hiding $250 billion in illegal dealings with Iran for more than a decade.
Utility Centrica Plc, the major shareholder in the Cygnus project to develop the sixth largest gas field in the U.K. Southern North Sea, said the initial investment by the partners of the project in the U.K. will generate an initial 1,200 jobs.
German industrial robots maker Kuka AG posted a surge in second-quarter net earnings to 14.8 million euros or 0.43 euros per share from 5.9 million euros or 0.17 euros per share last year.
Taro Pharmaceutical Industries reported an increase in profit for the second quarter, driven mainly by a 42 percent growth in revenues.
BELIMO Holding AG posted first half 2012 net income of CHF 29.6 million or CHF 48.61 per share compared to CHF 26.4 million or CHF 43.40 per share in the same period last year.
Dutch package delivery company TNT Express NV said its extraordinary general meeting of shareholders held yesterday discussed the public offer by UPS BidCo B.V., an indirectly wholly-owned subsidiary of United Parcel Service, Inc., on all issued and outstanding ordinary shares and all issued and outstanding American depositary shares in the capital of TNT Express N.V.
European stocks rebounded from early weakness to end mostly higher on Monday after the government in Athens said it reached an agreement with international lenders on the outline of another multi-billion austerity package.
The Euro Stoxx 50 index of eurozone bluechip stocks rose 1.1 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, ended little changed with a positive bias. Across Europe, the U.K.'s FTSE 100, the German DAX and France's CAC 40 gained between 0.4 percent and 0.8 percent.
U.S. stocks rose to their highest level in three months overnight, with better-than-expected corporate earnings and some positive news out of Europe underpinning sentiment. The strong upward move seen early in the session came in the wake of news that Greece and its international creditors have agreed on the need to strengthen policy efforts and meet the country's bailout conditions. Paring early gains, the Dow and the S&P 500 ended the session up about 0.2 percent each, while the tech-heavy Nasdaq advanced 0.7 percent.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.