Shares are expected to open lower before the eurozone inflation figures. The Eurostoxx 50 opens at 3,841.62 points (+0.86%), the CAC 40 at 6,562.39 points (+0.72%), the DAX 40 at 14,575.98 points (+0.79%), the BEL 20 at 3,947.73 points (+0.06%), the IBEX 35 at 8,930.80 points (-0.03%), the DJIA at 33.212,22.0 96 points (+1.76%), the Nasdaq at 12,131.13 points (+3.33%), the S&P 500 has 4,158.24 points (+2.47%) and the Nikkei 225 at 27,928.64 points (-0.26%).
On the exchange rate side, the change compared with the close in New York indicates that EUR/USD stands at 1.0748 (-0.31%), EUR/JPY at 137.57 (+0.04%), USD/JPY at 128.00 (+0.35%).
Investors will take the pulse of the French economy on Tuesday, with the second estimate of gross domestic product (GDP) in the first quarter, inflation figures for May, and household consumption spending in April. On the corporate side, Eramet, Maisons du Monde and GTT bring their shareholders together for a general meeting.
European equity markets are expected to open lower on Tuesday, while investors continue to question whether central banks can tighten monetary policy to curb decidedly high inflation without harming the global economy. At 7:45am, the CAC 40 futures contract fell by 18 points, or 0.3%, according to data from the broker IG Markets. The DAX 40 contract lost 56 points, or 0.4%, and the FTSE 100 contract fell by 4.3 points, or 0.06%.
In Asia, major markets present a mixed picture on Tuesday, after the release of the China Manufacturing Sector PMI, which contracted again in May. At the end of the session, the Hong Kong Stock Exchange's Hang Seng Index gained 0.9% and the Shanghai Composite Index added 1%. In Tokyo, on the other hand, the Nikkei index fell by 0.2%. Manufacturing activity in China contracted less in May than in April, as lockdown measures were relaxed in some cities and the authorities took steps to revive the economy. The manufacturing PMI stood at 49.6 in May, following 47.4 in April, the National Bureau of Statistics said on Tuesday. An index of less than 50 indicates a contraction in activity.
US Treasury bond yields rose on Tuesday morning as the spot market reopened after being closed on Monday due to a US holiday.
The dollar gains ground Tuesday morning against the other major currencies, including the euro, the yen, and the pound sterling, supported by the release of a better-than-expected manufacturing PMI in China. Given the recent fiscal and monetary efforts of the Chinese authorities, as well as a certain return to normality with the easing of health restrictions, a new recovery of the country's economy is likely in the coming months, says Yeap Jun Rong, strategist at market at IG. The extent of this recovery will probably be seen as an indicator of the success of the policy put in place by the government, adds the strategist.
Oil contracts rose to high levels on Tuesday, due to improved demand prospects in China, where some lockdown measures are about to be relaxed, and the agreement reached by European Union leaders on a partial embargo on oil Russian troll. At 7:35am, the August North Sea Brent contract was priced at $1.85, at $119.45 per barrel. The July contract for mild mild crude oil (WTI) listed on Nymex was $3.68, at $118.75 per barrel.