The major European markets are likely to open lower due to the negative lead from the rest of the global markets. The U.S. market closed lower on Monday and the Asian markets are trading weak on Tuesday after the euphoria over China stimulus plan wore off. That said, the index futures are pointing towards a higher opening for the markets on Tuesday. Oil prices fell in Asian trade Tuesday on renewed concerns about a global slowdown.
At 10:29 p.m. ET, the Brent North Sea crude December futures were quoted at $57.14 a barrel, down $1.94 or 3.28% after the contract rose by $1.73 or 3.00% to settle at $59.08 a barrel on London's ICE Futures Europe exchange on Monday.
U.S. stocks fell Monday as Circuit City suffered significant weakness after filing for Chapter 11 bankruptcy and General Motors plunged after Deutsche Bank downgraded its rating on the company's stock. The Dow Jones industrial average closed down 73.3 points or 0.8% at 8,870.5, the broader S&P 500 index shed 11.8 points or 1.3% to 919.2, and the tech-dominated Nasdaq composite index fell 30.7 points or 1.9% to 1,616.7.
In the Asia-Pacific region Tuesday, Hong Kong's Hang Seng index is down 0.5%, Australia's All Ordinaries index is losing 2.8%, and Japan's Nikkei 225 index is declining 1.2%, while South Korea's KOSPI and China's Shanghai Composite index are gaining 0.1% and 0.4%, respectively.
Traders in Europe will focus on the German and Euro-Zone ZEW survey reports, and the U.K. trade balance data and the RICS house price balance report on Tuesday. The German ZEW index is expected to come in at -63 in November, matching the previous month's result. However, the current situation component is predicted to fall further to -45 from -35.9 in October. For the euro zone, economists are expecting a modest rebound in the ZEW economic sentiment indicator to -60.5 in November from -62.7 in the prior month. In the U.K., the Office for National Statistics will release U.K. trade balance data. The U.K. visible trade deficit is expected come in at £8.0 billion in September, down from a deficit £8.2 billion in August. The total trade deficit is forecast to be £4.7 billion, flat with prior month. In the U.S., traders have little economic reports to digest on Tuesday.
The European markets rose for a second day on Monday, as commodity stocks rallied on firmer copper and crude oil prices after China unveiled a $586 billion economic stimulus plan. The FTSEurofirst 300 index of pan-European blue chips closed up 0.9% at 922.5 and the narrower DJ Stoxx 50 index rose 0.7% to 2,299.4. Around Europe, the U.K.s FTSE 100 index rose 0.9% to 4,403.9, France's CAC 40 index gained 1.1% to 3,505.8, and Germany's DAX index climbed 1.8% to 5,025.5.
In Asia Tuesday, the euro fell to a four-day low of 1.2677 against the dollar and 123.81 against the yen. The euro also weakened against the pound and the pair is currently worth 0.8120. The 15-nation currency closed Monday's European session at $1.2764, 124.64 yen and 0.8174 pound.
In the U.K., Aveva Group announces earnings, Electrocomponents, InterContinental Hotels Group, Northern Foods, Vodafone Group, Yell Group, and VT Group may move as these companies are scheduled to report earnings. HBOS may react to a BBC report that Bank of China may be interested in buying HBOS.
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