LONDON – European markets will open slightly lower on Tuesday, on the way to extending losses after a 10-day winning streak in the previous session.
The major exchanges were expected to open the British FTSE 100 index by 10 points at 7,136, the French CAC 40 4 points lower at 6,829, while the German DAX remained little changed at 15,894, according to IG.
Asia Pacific stocks were mostly lower overnight, with Chinese internet stocks falling again in Hong Kong as regulatory fears resurfaced. Tencent, Alibaba and JD.com all traded lower shortly after China’s market regulator released draft rules designed to prevent unfair online competition.
On Wall Street, US stock index futures were seen a little lower after the Dow and S&P 500 closed at record highs during regular trading on Monday.
In Europe, UK job data showed the number of employees on UK company payrolls rose 182,000 in July from the previous month. The UK’s Bureau of National Statistics announced that the overall unemployment rate for the second quarter was 4.7%, slightly lower than economists polled by Reuters had expected.
The inflation rates in the euro area for July follow around 10:00 a.m. London time.
The ongoing coronavirus pandemic and the spread of the highly transmittable Delta Covid-19 variant have shaken market confidence. Investors are also watching the potential geopolitical impact following the Taliban’s capture of the Afghan capital, Kabul.
US President Joe Biden rejected the blame for the uproar and panic as thousands of people desperately tried to flee at a Kabul airport.
Biden described the fear of prisoners in the country as “heartbreaking” and admitted that the Taliban’s lightning offensive had taken place faster than expected. His comments came amid mounting criticism of his government’s handling of the situation.