RTTNews - Tracking an intra-day recovery in Asian stocks, European stocks are set to open higher on Tuesday after sharp losses in the previous two sessions. The Asian markets have either cut their early losses or bounced back into positive territory on Tuesday on the back of bargain hunting and short covering after a terrible setback in the previous session.
Back home, a report on U.K.'s consumer prices and German economic sentiment survey, due for release from Europe today, are likely to attract investor attention.
U.K.'s annual inflation is forecast to slow to 1.5% in July from 1.8% recorded in June. In June, the annual inflation had dropped below the central bank's target of 2% for the first time since September 2007. Meanwhile,UK retail prices are expected to drop 1.7% year-on-year in July compared to a 1.6% drop in June. On a monthly basis, the decline is seen at 0.2%.
German economic sentiment is forecast to rise to 45 in August from 39.5 in July, while the current situation is seen at minus 85 versus minus 89.3 last month.
Traders may also look forward to housing starts and producer prices data from the U.S. for signs of economic recovery in the wold's largest economy.
U.S. stocks saw a sharp pullback on Monday, as last week's disappointing data on the health of the consumer sparked a broad-based sell-off in equities. Nonetheless, some of the pessimism was moderated by the release of a report from the Federal Reserve Bank of New York showing that conditions for New York manufacturers improved for the first time in well over a year in the month of August.
A release from the National Association of Home Builders that showed a rise in homebuilder confidence also helped cut some losses. The Dow Jones Industrial Averaged closed down 2%, the Nasdaq Composite drifted down 2.75% and the S&P 500 index fell 2.43%.
Crude oil futures finished lower again on Monday, as lower global equities amid concerns about the pace of global economic recovery raised concerns about energy demand. After plunging to as low as $65.23 a barrel earlier in the session, crude oil finished off its lows at $66.75 per barrel, down 76 cents on the session. However, in Asian trading on Tuesday, crude oil is showing a modest recovery and is currently trading at $67.04 a barrel, up 0.43%.
In corporate news, automaker General Motors has reached a binding agreement to sell its loss-making Saab Automobile AB unit to Swedish sports car manufacturer Koenigsegg Group AB, reports suggest.
Rio Tinto plc has received a binding offer from Amcor to acquire the majority of the Alcan Packaging businesses, comprising Alcan Packaging global pharmaceuticals, global tobacco, food Europe and food Asia divisions for a total consideration of $2.025 billion.
The Blackstone Group is set to buy half of the Broadgate Estate in the City of London from British Land plc. for GBP 150 million, Timesonline reported, citing people familiar with the negotiations.
French airport operator Aeroports de Paris said July traffic fell 3.1 percent year-over-year to 8.2 million passengers.
Renault SA won an appeal against a ban on Fernando Alonso's team competing in the European Grand Prix in Valencia on Sunday.
Poland's treasury ministry said it selected a bid by Germany's RWE AG for exclusive talks on sale of a 67% stake in listed utility Enea SA.
Chief Executive Officer of Singulus Technologies AG will leave the company on Aug 31, the company said in a statement.
GPC Biotech AG reported a second quarter net loss of EUR 4.2 million or EUR 0.11 per share, compared to a net loss of EUR 8.7 million or EUR 0.24 per share for the same period in 2008.
The European markets fell for the second straight session on Monday, as mining and energy stocks slipped after metals and crude oil prices declined. The FTSEurofirst 300 index of pan-European blue chips closed 2.02% lower, while the narrower DJ Stoxx 50 index fell 1.87%. Around Europe, the U.K.'s FTSE 100 index fell 1.46%, France's CAC 40 index dropped 2.16% and Germany's DAX index slipped 2.20%.
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