The FTSE 100 is the only major European market to open Tuesday, seen just slightly higher by 5 points. Both France and Germany are closed for Labor Day, as are many of the smaller markets across Europe and Asia.
Planned Labor Day celebrations will see rallies across a number of countries in support of workers’ rights and against some of the austerity measures being rolled out by various governments, especially in Europe.
Markets closed lower Monday as fears about Spain and the re-emergence of the euro zone debt crisis took hold. A survey of leading investment houses in the U.S, Europe, Britain and Japan showed a flight out of euro zone bonds, with holdings of the bonds in balanced portfolios falling to 24.5 percent, lower compared with both a month and a year ago.
Despite an increasingly vocal argument from those in Europe who argue that austerity is strangling growth, German Finance Minister Wolfgang Schaeuble said austerity should remain the focus for the euro zone, even if ways to examine growth in the region take center stage in the coming weeks.
Earlier Tuesday, the Reserve Bank of Australia cuts rates by 50 basis points to 3.75 percent.
Two top Federal Reserve officials—John Williams and Richard Fischer—said on Monday that they see no need for the U.S central bank to ease monetary policy further.
In earnings news, BP , Man Group and state-backed Lloyds Banking Group will report first-quarter numbers.
In the U.S before the opening bell, Pfizer and Avon Products are among those reporting.
The “Occupy” movement is expected to come out in force in a number of countries Tuesday, including New York and London. Occupy London protestors are planning a wave of action for May Day, as well as May 12 and May 15.