RTTNews - European stock futures point towards a higher opening on Tuesday morning amid firmer Asian stocks and higher U.S. stock futures.
Asian stocks showed a notable recovery on Tuesday, led by technology and mining companies, after the purchasing managers' index (PMI) compiled by the China Federation of Logistics and Purchasing showed a continued recovery in China's manufacturing activity for the sixth consecutive month in August.
Crude oil futures also edged higher by half a percent in electronic trading Tuesday afternoon in Asia after a near 4% plunge yesterday.
On the economic front, Switzerland's real gross domestic product declined 0.3% sequentially in the second quarter, the State Secretariat for Economic Affairs or SECO reported Tuesday. Economists were expecting a decline of 1% after falling 0.9% in the first quarter.
Among the other economic reports due from Europe, investors await the U.K. manufacturing PMI report for August and data related to U.K. mortgage approvals for more cues on the health of the domestic economy. The number of mortgage approvals in July is seen at 50,100 in July compared to 47,600 in June.
PMI manufacturing report and pending homes sales data from the U.S. due later in the session could also be in focus.
In corporate news, French nuclear reactor builder Areva SA said its first-half net profit fell 79 percent to 161 million euros following a fresh charge for a delay on a Finnish nuclear plant project.
Builder Eiffage SA reported a 64% fall in first-half net profit and cut its 2009 revenue target to 13.4 billion euros from 13.7 billion euros previously.
Industrial and media conglomerate Groupe Bollore reported a 70 percent plunge in first-half net profit to 42 million euros from 140 million euros in the year-ago period.
Graphite and electrical components maker Carbone Lorraine SA reported a 59 percent plunge in first-half net income to 13.8 million euros from 33.6 million in the year-ago period.
STOXX, the leading provider of European equity indexes added Germany's utility firm RWE AG to Europe's Dow Jones Stoxx 50 Index, replacing Royal Philips Electronics NV.
Judge Richard Schmidt of the U.S. Bankruptcy Court for the Southern District of Texas, Corpus Christi Division, on Monday issued a formal recommendation to confirm the reorganization plan sponsored by Americas Mining Corp., an affiliate of Grupo Mexico SAB de CV, and Asarco Inc., the parent companies of copper miner Asarco LLC.
Legal & General Group plc announced the appointment of Nigel Wilson to its Board as Group Chief Financial Officer, effective September 1.
Quayle Munro Holdings plc said a Letter of Intent has been signed with Neptune Marine Services for the sale to Neptune of Submersible Technology Services (Holdings), in which Quayle Munro holds a 49.9% shareholding.
Norseman Gold plc reported a full-year pre-tax profit of A$22.21 million versus a restated loss of A$8.73 million in the prior year.
The European markets fell on Monday, as a steep drop in China's main stock market raised anxiety about the pace of the global economic recovery. The Shanghai Composite Index tumbled 6.74%, the most since June 2008, and entered a so-called bear market.
The FTSEurofirst 300 index of pan-European blue chips closed 0.65% lower, while the narrower DJ Stoxx 50 index fell 0.43%. Around Europe, France's CAC index dropped 1.07% and Germany's DAX index slipped 0.96%. The London market was closed for a bank holiday.
On Wall Street, stocks remained mostly negative throughout the trading day on Monday following a massive sell-off in the Chinese market. Still, with a slew of economic reports due for release later this week, the major averages moved well off their lows going into the close.
Traders largely shrugged off the results of the Institute for Supply Management - Chicago's survey of regional manufacturing activity, which showed that activity unexpectedly reached neutral territory in August following ten consecutive months of contraction. The Dow ended lower by 0.5%, the Nasdaq Composite fell 0.97% and the S&P 500 index gave off 0.81%.
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