The major European averages are likely to open lower Tuesday, ahead of the release of some important economic reports, with the German DAX, France's CAC 40 10 Euro and U.K.'s FTSE 100 futures all trading below the flat mark. Crude oil is trading lower by $0.97 per barrel and gold is down $0.8 an ounce.
On the economic front, the Bank of Japan Tuesday maintained its key interest rate at near-zero as expected and reiterated that it would keep monetary conditions extremely accommodative. The central bank also foresees deflation moderating slightly in the fiscal year beginning April due mainly to a rise in crude oil prices.
Reports on U.K.'s fourth-quarter GDP and U.S. Consumer confidence are scheduled to be released later today.
In the U.S., the National Association of Realtors Monday said existing home sales fell 16.7% in December, compared to economist estimates for a decrease of about 9.8%. Nonetheless, existing home sales were still up 15.0% compared to the same month a year ago.
Pharma companies may see movement today after Basel, Switzerland-based Novartis reported an increase in fourth-quarter profit. The company also named Joe Jimenez as its new chief executive officer.
Europe's largest engineering conglomerate Siemens AG also reported higher profit for the first quarter today.
Miners may be in focus, a day after the European Commission said it opened a formal antitrust investigation into Anglo-Australian mining companies Rio Tinto and BHP Billiton, as the companies have agreed to establish a joint production venture covering the entire Western Australian iron ore assets of both firms.
Consumer products makers may see an upside with PZ Cussons plc reporting an increase in profit for the first six months of the year. Water supplier Severn Trent plc, which reported in-line trading, also is likely to see upward momentum.
Asian stocks declined Tuesday, amid concerns of China adopting measures to cool off economic growth. Japan's Nikkei 225 closed the day's session lower by 1.78% and Australia's All Ordinaries closed down 0.60%. India's BSE Sensex is down 0.47%. Reports said China Tuesday implemented a previously announced increase in required reserves for some banks.
The major European markets closed notably lower Monday. The U.K.'s FTSE 100 and the German DAX Index dropped by 1.4% and 1.1%, respectively, while the French CAC 40 Index declined by 1%.
In the U.S., stocks closed on the upside by modest margins Monday. The Dow advanced by 23.88 points or 0.2% to 10,196.86, the Nasdaq closed up 5.51 points or 0.3% at 2,210.80 and the S&P 500 rose by 5.02 points or 0.5% to 1,096.78.
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