European stock markets are expected to open with mixed results on Tuesday as economic uncertainties and concerns about Europe’s growth outlook return. According to IG data, the U.K.’s FTSE is set to rise by 4 points to 8,253, Germany’s DAX by 23 points to 18,852, France’s CAC 40 by 19 points to 7,518, and Italy’s FTSE MIB by 16 points to 33,610.
Meanwhile, Asian-Pacific markets rallied overnight, led by Chinese stocks, following Beijing’s announcement of new policy easing measures. People’s Bank of China (PBOC) Governor Pan Gongsheng revealed plans to cut the reserve requirement ratio for banks by 50 basis points and lower the seven-day reverse repurchase rate from 1.7 percent to 1.5 percent, though no specific timeline was provided.
In the U.S., stock futures remained relatively unchanged on Monday after the S&P 500 and Dow Jones Industrial Average closed at record highs, continuing last week’s momentum following the Federal Reserve’s decision to cut interest rates by 0.5 percentage points. The fed funds rate now stands between 4.75 percent and 5.00 percent.
European markets closed higher on Monday as investors reacted to banking deals and weaker-than-expected preliminary composite PMI data for Germany, France, and the broader eurozone, reflecting a contraction in business activity.
Attention will be on Commerzbank on Tuesday after its shares fell by 5.7 percent on Monday. The decline came after German Chancellor Olaf Scholz criticised Italy's UniCredit for what he called a “hostile” move, following UniCredit’s increased stake in Commerzbank to 21 percent and its request to raise it to 29.9 percent , indicating a potential takeover bid. Investors will be closely monitoring developments surrounding this situation.
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