European Shares May See Cautious Start After Monday's Rally

European stocks are seen opening on a cautious note Tuesday after posting strong gains in the previous session.

Asian stocks traded mixed, with Chinese and Hong Kong markets rising, as China’s state media played down the severity of the COVID-19 wave surging over the country ahead of a briefing to the World Health Organization later in the day.

People’s Daily, the official newspaper of the Communist Party, cited several Chinese experts as saying the illness caused by the virus was relatively mild for the vast majority of people.

The U.S. dollar eased, with the Japanese yen hitting a seven-month high, on speculation that the Bank of Japan might move away from its ultra-easy policy.

Gold prices rose about 1 percent as investors looked ahead to the release of the minutes of the Fed’s December policymaking meeting on Wednesday as well as U.S. payrolls data, due to be released on Friday, for clues on the Fed’s next move.

Oil prices slipped in Asian trade on fuel demand concerns after the International Monetary Fund’s managing director warned a third of the world’s economies may slide into a recession in 2023.

U.S. markets were closed on Monday on account of the New Year holiday.

In Europe, stocks kicked off 2023 on a positive note after a survey showed the intensity of the eurozone manufacturing sector downturn eased in the final month of 2022.

The pan-European STOXX Europe 600 gained 1 after recording its worst annual performance since 2018 last year.

The German DAX rallied 1.1 percent and France’s CAC 40 index climbed 1.9 percent while markets in London remained closed.

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