Stock markets in Europe are expected to trade on a cautiously optimistic note on Tuesday amidst rising geopolitical tensions, Fed rate cut hopes, thin holiday trade as well as mixed reactions to tech valuations. The positive sentiment in Wall Street on Monday as well as in Asian markets on Tuesday are expected to limit losses.
Wall Street had closed on a positive note on Monday amidst strong performance by technology stocks. Reports of Nvidia's plans to begin shipping H200 AI chips to China by mid-February boosted sentiment. The Dow Jones Industrial Average added 0.47 percent to finish trading at 48,362.68. The tech-heavy Nasdaq Composite gained 0.52 percent to close trading at 23,428.83.
European markets had closed on a mildly negative note on Monday amidst a cautious sentiment and fears over valuation of tech stocks. France's CAC 40 declined 0.37 percent. The pan-European Stoxx-50 as well as U.K.'s FTSE 100, both erased 0.32 percent. Switzerland's SMI slipped 0.08 percent while Germany's DAX edged down 0.02 percent in Monday's trading.
Current indications from the European stock futures indicate a mixed sentiment. The DAX Futures (Mar) as well as the pan-European Stoxx 50 Futures (Mar) have edged up 0.02 percent. The SMI Futures (Mar) edged up 0.02 percent. The FTSE 100 Futures (Mar) is trading 0.08 percent lower. The CAC 40 Futures (Jan) stood 0.23 percent below the flatline on Monday.
American stock futures are trading in mildly negative territory. The US 30 (DJIA) is trading 0.11 percent lower, whereas the US500 (S&P 500) is trading 0.10 percent below the flatline.
Asian stock markets are trading on a positive note tracking Wall Street's gains on Monday. Australia's S&P ASX 200 has rallied 1.1 percent. South Korea's KOSPI has rallied 0.43 percent. China's Shanghai Composite has added 0.34 percent whereas Hong Kong's Hang Seng has added 0.23 percent. DJ New Zealand edged up 0.07 percent. Japan's Nikkei 225 as well as India's Nifty 50 are trading close to the flatline.
The Dollar Index, a measure of the U.S. dollar's strength relative to six currencies, is trading at 98.06, declining 0.23 percent from 98.29 at the previous close as markets priced in hopes of two Fed rate cuts in 2026. The EUR/USD pair has in the meanwhile gained 0.17 percent to 1.1777 and the GBP/USD pair has gained 0.22 percent to trade at 1.3490. The USD/CHF pair is trading 0.40 percent lower at 0.7896. The EUR/GBP pair is trading 0.06 percent lower at 0.8731.
Gold has retreated mildly after touching a fresh all-time high of $4,530.3 earlier in the trade. Gold Futures for February settlement are currently trading at $4,511.95, rising 0.95 percent from the previous close of $4,469.40.
Both the crude oil benchmarks are trading well below the flatline after massive gains over the past few days attributed to fears of crude oil supply disruptions. Brent Crude Futures for February settlement are trading 0.26 percent lower at $61.91 versus $62.07 at close on Monday. WTI Crude Futures for February settlement is currently trading 0.31 percent lower at $57.83 versus $58.01 at the previous close.
No major economic data releases are due from the region on Tuesday.
Updates to earnings are due on Tuesday from Germany-headquartered Hornbach-Baumarkt as well as U.K-headquartered Residential Secure Income PLC.
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Business News
December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.