RTTNews - The major markets across Europe are poised for a slightly higher opening on Tuesday morning, taking cues from Wall Street, where the major indices ended narrowly mixed despite a late-session recovery attempt. The impending announcement about the list of banks that might qualify for the repayment of TARP funds by the Federal Reserve, and Fed's quantitative easing measures are likely to influence trading during the day. The Asian markets are trading weak on valuation concerns.
In the U.S., no major economic reports were released on Monday and traders utilized the opportunity to take some profits in morning session. However, speculation about a near-term recovery in the world's largest economy lured investors towards some selective buying, propping up the markets in a late-stage rally, enabling the indices to end mixed around the unchanged line.
The Dow finished up by 1.36 points or 0.02% at 8,764, the Nasdaq dipped by 7.02 points, or 0.4% to 1842.40, and the S&P 500 fell 0.95 points or 0.1% to 939.
Meanwhile, the European markets ended weaker on Monday, as mining stocks lost ground after metals prices declined, and airline stocks retreated after the International Air Transport Association said that sales may fall 15% this year. Downgrading of the credit rating for Ireland by Standard & Poor's also negatively influenced the markets.
The FTSEurofirst 300 index of pan-European blue chips closed 0.17% lower at 865, while the narrower DJ Stoxx 50 index fell 0.50% to 2,136. The U.K.'s FTSE 100 index fell 0.75% to 4,405, while France's CAC 40 index slipped 1.48% 3,290 and Germany's DAX index dropped 1.42% to 5,005.
On the economic front, the Department of Communities and Local Government or DCLG is set to release U.K. house prices data at 4.30 a.m. ET. House prices in the U.K. are expected to decline 13.3% annually in April, following a 13.6% fall in March.
At 6.00am ET, the Federal Ministry of Economics and Technology is scheduled to issue the industrial production report for Germany. Industrial production is expected to decline 20.5% year-over-year. However, output is forecast to grow 0.3% on a monthly basis.
Meanwhile, provisional data released by the Federal Statistical Office (Destatis) in Germany revealed that German exports declined 28.7% during April year-over-year, while imports slipped 22.9% year-over-year. Upon seasonal and calendar adjustment, exports were down 4.8% month-over-month, while imports were down 5.8% compared to the previous month. The foreign trade balance showed a surplus of EUR 9.4 billion in April 2009, sharply lower than a surplus of EUR 19.0 billion in April 2008. Upon calendar and seasonal adjustment, the foreign trade balance recorded a surplus of EUR 9.0 billion, Destatis noted.
In corporate news, GlaxoSmithKline (GSK, GSK.L) may see activity following the announcement of a definitive agreement with Shenzhen Neptunus Interlong Bio-Technique Co. Ltd to form a joint venture to develop and manufacture influenza vaccines for China, Hong Kong, and Macau, which is expected to become available over the next few years. GlaxoSmithKline will have a 40% stake in the joint venture while the balance 60% stake would be taken by Shenzhen Neptunus.
Airline stocks are expected to be in focus after the biggest airline in Europe, Air France - KLM Group reported an 8.1% drop in traffic during May, the fifth consecutive month of decline in traffic, citing unfavorable calendar effects as one of the reasons.
Areva SA might react to news that its Transmission and Distribution unit won a 50 million-euro contract to supply four substations to India's Power Grid Corp.
Continental AG is likely to be in the spotlight after it announced that its supervisory board will decide by July end whether to forge a tie-up with Schaeffler Group, the biggest shareholder of the company, including combining of operations.
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