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European Shares Seen Up As US Recession Fears Abate


European stocks may open higher on Tuesday as fears of a possible U.S. recession receded and British prime minister Theresa May told the House of Commons that the government lacks the parliamentary support to hold a third vote on its Brexit deal.

U.S. economic growth is slowing but is still robust, Chicago Federal Reserve Bank President Charles Evans said on Monday. He put the chances of a recession at no more than 25 percent.

Separately, former U.S. Federal Reserve chair Janet Yellen said at a Credit Suisse forum on Asian investment that the slowdown in U.S. growth is something that was long expected and it is unlikely to drop to a level that will cause a recession.

Asian stocks edged higher as U.S. Treasury yields edged up after a two-day tumble. The dollar rebounded against the yen and gold held near one-month high while oil edged up amid supply cuts.

Meanwhile, ahead of another round of trade talks set to begin in Beijing this week, former U.S. Treasury Secretary Jack Lew told CNBC that resolving the remaining sticking points will be a rocky process.

On the Brexit front, MPs have temporarily sized control of the Brexit process from the British Prime Minister Theresa May, in a move that gives them control of Parliament's agenda on Wednesday. The MPs might vote on as many as seven different options for Brexit.

Overnight, U.S. stocks ended a choppy session narrowly mixed as growth worries persisted and the long-awaited finding by Special Counsel Robert Mueller removed a cloud hanging over Mr Trump's presidency.

European markets ended Monday's session lower as investors fretted about an impending U.S. recession.

The pan European Stoxx 600 declined half a percent. France's CAC 40 index and the German DAX both dipped by 0.2 percent while the U.K.'s FTSE 100 dropped 0.4 percent.

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