LONDON-As the market pays attention to the latest Purchasing Managers Index (PMI) data in the Eurozone, European stock markets are expected to open lower on Tuesday.
British FTSE The index fell 14 points to 7,241 at the opening, Germany Dax French stock market fell 52 points to 16,063 CAC 40 Fell 21 points to 7,084 and Italy FTSE Index According to IG data, it fell 108 points to 27,274 points.
The European market’s attention on Tuesday will focus on the preliminary PMI data for the euro zone in November. With the surge in Covid cases in the region, this data will become the latest indicator of the economic health of the region.
On Monday, German Health Minister Jens Spahn warned that “it is possible that by the end of this winter, almost everyone in Germany will be vaccinated, recover or die… This is the reality,” he said at a press conference. Germany is considering whether to implement stricter Covid measures and may implement a partial blockade like its neighbour, the Netherlands. Germany has one of the lowest vaccination rates in Western Europe.
Market participants will also digest Monday’s announcement, namely Fed Chairman Jerome Powell was selected President Biden’s second four-year term will lead the central bank.
This move triggered expectations that as the economy recovers from the pandemic and tries to fight inflation, the central bank will keep its monetary policy unchanged. Biden has been under pressure to appoint a more progressive Democrat, rather than allowing Republican Powell to assume this role.
Powell guided the U.S. Central Bank and the country’s economy through a pandemic recession and introduced unprecedented monetary stimulus measures to maintain the functioning of financial markets. His nomination will now be submitted to the Senate for confirmation.
US stocks initially reacted positively to the announcement, but reversed at the end of the trading day, and yields continued to rise. US stock futures Trading held steady overnight on Monday. Asia Pacific stocks Trading on Tuesday was mixed.
Tuesday’s revenue came from Severn Trent, Compass and Kingfisher.
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— Jeff Cox and Thomas Franck of CNBC contributed to this report.