LONDON – European markets were set to retreat slightly on Tuesday, tracking global risk aversion as investors assessed whether last month’s rally would continue.
Britain’s FTSE 100 fell about 20 points to 7,393, Germany’s DAX fell about 67 points to 13,413, and France’s CAC 40 is expected to drop about 24 points to 6,413.
The pan-European Stoxx 600 edged lower in Monday’s session to start August, its best month since November 2020.
Stocks in Asia-Pacific retreated overnight, led by mainland China, as geopolitical tensions rose due to a possible visit to Taiwan by U.S. House Speaker Nancy Pelosi.
U.S. stock futures fell in premarket trading after falling earlier this month, and not all investors are convinced that the pain in risk assets is truly over.
The dollar and long-term U.S. Treasury yields fell on concerns over Pelosi’s visit to Taiwan and weak U.S. data on Monday showing weaker manufacturing activity in June, fueling fears of a global recession.
Oil prices also retreated as manufacturing data showed weakness in several major economies.
Earnings remain the main driver of individual stock price action. BP, Ferrari, Maersk and Uniper were among the major European companies reporting ahead of the opening bell on Tuesday.
The first Ukrainian ship bound for Lebanon since the Russian invasion left the port of Odessa on Monday under a safe passage agreement to deliver food through the Black Sea, offering some hope in the face of a deepening global food crisis.
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