RTTNews - European stocks are likely to open lower on Tuesday after a strong showing in the previous session. Asian stocks either pared their initial gains or slipped into the red on Tuesday due to profit taking.
Eurozone producer prices and Switzerland's CPI are among the economic reports scheduled to be released in Europe. After dropping 5.8% on a yearly basis in May, Eurozone producer prices are forecast to drop 6.6% in June. Month-over-month, producer prices are predicted to rise 0.2%. At 4.30am ET, the U.K. construction PMI is due. The PMI reading for July is seen at 45, up from 44.5 logged in June.
On Wall Street, the major averages rose sharply on Monday, buoyed by reassuring economic data and firm commodity prices. A report from the Institute for Supply Management showed a much slower than expected pace of contraction in manufacturing activity in July and significant improvements in new orders and production.
Separately, data from the U.S. Commerce Department revealed that construction spending rose 0.3% percent in June following a revised 0.8% slide in May, surprising economists who had expected a decline of 0.5% for the month. The Dow Jones Industrial Average closed up 1.25%, the Nasdaq Composite rose 1.52% and the S&P 500 index advanced 1.53%.
Crude oil continued its upward surge on Monday, as encouraging economic data improved the prospect of energy demand. Light sweet crude for September delivery rallied to a high of $72.10 before finishing at $71.58, up $2.13 in New York trading on Monday. In Asian trading on Tuesday, crude oil futures drifted lower below $71 a barrel ahead of industry data from the American Petroleum Institute that is expected to show a rise in U.S. crude inventories.
In corporate news, Australian financial services provider Australia & New Zealand Banking Group or ANZ on Monday agreed to acquire selected Asian banking businesses of U.K.-based Royal Bank of Scotland Group plc in a near $550 million deal.
France's largest bank by market value BNP Paribas SA reported a 6.6% rise in its second-quarter net profit, helped by the acquisition of Belgian peer Fortis' assets and strong showing in its investment banking activities.
German car maker Daimler AG said its July sales of combined Mercedes-Benz Cars division in the U.S. dropped 24.2% from a year ago.
Standard & Poor's Ratings Services lifted credit ratings on Fortis NV out of junk into investment-grade territory.
Switzerland's biggest bank by assets UBS AG said its net loss widened to a smaller-than-expected 1.4 billion Swiss francs during the second quarter from 395 million francs a year earlier.
Europe's biggest car maker Volkswagen AG said that its U.S. sales for July rose a modest 0.7 percent year-over-year. Sports-car maker Porsche said its U.S. sales for July dropped 52 percent from the year-ago period.
Endeavour International Corp. Tuesday reported that on a GAAP basis, net income to common stockholders was $7.12 million for the second quarter of 2009, compared to a loss of $66.73 million in the same quarter in 2008.
The European markets rose on Monday, as mining and energy stocks rallied on firmer copper and crude oil prices and banking stocks were boosted by earnings from HSBC and Barclays. The FTSEurofirst 300 index of pan-European blue chips closed 1.42% higher, while the narrower DJ Stoxx 50 index rose 1.60%. Around Europe, the U.K.'s FTSE 100 index gained 1.61%, France's CAC 40 index rose 1.50% and Germany's DAX index advanced 1.78%.
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