European Stocks Seen Steadying After Chinese Data
European stocks were seen steadying on Tuesday following Chinese macroeconomic data that fuelled gains in Asian equities, while a number of investors see attractive valuations after a six-week retreat.
Financial spreadbetters expected Britain's FTSE 100 to open 11 to 20 points higher, or up as much as 0.4 percent, Germany's DAX to open down 14 points to up 24 points, or up as much as 0.3 percent, and France's CAC40 to open down 16 points to up 6 points, or up as much as 0.2 percent.
London’s FTSE closed up 7.66 points on Monday to 5773.46, the DAX was up 15.24 points to 7085.14 and the CAC40 in Paris closed up 2.52 points at 3807.61.
Telecommunications stocks were buoyed by gains in Vodafone which rose 0.9 percent on the back of a target price hike by RBS.
In the US stocks closed mixed on Monday following another downgrade of Greece’s credit rating by Standard and Poor's to the world's lowest, which offset gains from a flurry of M&A activity.
In Asia, markets were mainly higher on Tuesday, but fears over Greek debt capped wider gains and dimmed risk appetite.
Chinese inflation figures and industrial output provided some relief that the world's second biggest economy would not have to aggressively increase monetary tightening, boosting appetite for risky assets.
The Swiss franc held a near record high against the euro in Asia on Tuesday, due mainly to concerns over the sovereign debt crises in peripheral euro zone countries and the latest Greek downgrade.
The single currency traded at 1.2053 Swiss francs down 0.09 percent, having reached a record low at 1.2004 francs in New York.
Against the dollar the euro recovered from a two-week low around $1.4319 to last trade at $1.4413.
A flurry of corporate data will be released on Tuesday including a first quarter trading statement from British retail giant Tesco , Carphone Warehouse prelims and Glencore’s first quarter interim statement which is expected at 7:00 am London time.
In the UK, inflation figures for May will be available from 9:30 London time, with Spanish CPI data for May out at 8:00 am London time.
In Brussels, euro zone finance ministers will meet for dinner on Tuesday to discuss an overhaul of EU financial regulation to avoid future debt crises and in preparation for the Eurogroup meeting on June 20 at which it is expected that a second rescue package for Greece will be approved.
In Paris, Bank of France head Christian Noyer will present the bank’s report at 8:00 London time.