Tourists take pictures under the rain in front of the Eiffel Tower in Paris.
Lionel Bonaventure AFP Getty Images
LONDON – European stocks are expected to open in mixed territory on Tuesday as economic uncertainty and concerns about Europe’s growth prospects return to the front.
The UK FTSE index is expected to open 4 points higher at 8,253, Germany DAX up 23 points at 18,852, France’s CAC 40 up 19 points in 7.518 and Italy’s FTSE MIB 16 points higher at 33,610, according to data from IG.
European shares closed higher on Monday as investors weighed banking transactions and combined German and French PMI data, a measure of business activity in the manufacturing and services sectors, which fell in September in Europe’s two biggest economies, as well as the wider euro zone. . .
Market participants will be keeping an eye on Commerzbank shares on Tuesday after shares fell as much as 5.7% on Monday after German Chancellor Olaf Scholz criticized what he described as UniCredit’s “hostile” and “unfriendly” moves at the bank, Reuters reported.
The comments came shortly after Italy’s UniCredit announced it had increased its stake in the German lender to around 21% and submitted a request to raise its holding to 29.9%, signaling a takeover bid could be on the cards.
Asia-Pacific markets rose overnight, with Chinese stocks leading gains after Beijing announced a range of policy easing measures in a rare briefing from Pan Gongsheng, governor of the People’s Bank of China.
The PBOC will reduce the reserve requirement ratio for banks by 50 basis points, although it did not give a specific timeline. It also announced it would cut its seven-day repurchase rate from 1.7% to 1.5%, among other measures.
US stock futures were little changed on Friday after the S&P 500 and Dow Jones Industrial Average posted new record highs.
The gains were modest but seen as a continuation of last week’s rally after the US Federal Reserve cut interest rates by half a percentage point. Current fed funds rates range from 4.75% to 5.00%
