The European markets may see lackluster trading on Tuesday, as investors look to the U.S markets for direction ahead of earnings from major U.S companies. Cadbury could be in focus as Kraft Foods closes in on a £11.7bn takeover of the British chocolate maker.
Asian stock markets traded mixed for a second straight day on Tuesday due to the absence of a trading lead from Wall Street. A slight recovery in commodity prices on dollar weakness offered some support, but caution prevailed ahead of the earnings season in the United States.
IBM will report its earnings later in the day, followed by Bank of America and Morgan Stanley on Wednesday and Google on Thursday. According to Deutsche Bank, a total of 65 S&P 500 companies are scheduled to report their results this week.
Crude oil futures rose above $78 a barrel in Asian deals on Tuesday, taking cues from the weaker U.S dollar and on expectations that Thursday's announcement of key Chinese data for the fourth quarter of 2009 will surprise on the upside. Yesterday, crude oil for February delivery rose 0.3% in New York, breaking a five-day losing streak.
In economic news, International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn urged nations to continue with their stimulus packages aimed at rebuilding their economies hit by the recent global economic slowdown, warning that a quick exit from such economy rebuilding measures could risk setting off another downturn.
Major economic reports due for the day include consumer price inflation from the United Kingdom and Germany's economic sentiment.
Year-over-year, consumer prices are tipped to rise 2.6% in December, accelerating from the 1.9% growth in the preceding month. The monthly inflation rate is seen at 0.3% and retail price inflation at 2.1%.
The economic sentiment indicator for Germany is seen at 50 in January, down from 50.4 in the previous month. The current conditions index is expected to rise to minus 56.2 from minus 60.6.
In corporate news, GlaxoSmithKline Plc said that a small quantity of fake weight loss product, falsely packaged and labeled as alli has been sold on online auction websites such as eBay.
According to media reports late Monday, packaged food giant Kraft Foods, Inc. has agreed to acquire British chocolate giant Cadbury Plc in a sweetened offer for about $19 billion or GBP 11.7 billion, in cash and stock.
The European markets rose in light trading on Monday, as mining stocks rallied after metals prices advanced and investors speculated that mergers and acquisitions would pick up.
The FTSEurofirst 300 index of pan-European blue chips closed 0.79% higher, while the narrower DJ Stoxx 50 index rose 0.69%. Around Europe, the U.K.'s FTSE 100 index advanced 0.72%, France's CAC 40 index rose 0.58% and Germany's DAX index added 0.72%. Trading was light, as U.S. markets were closed for Martin Luther King Day.
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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.