European Shares Set For Lackluster Start On China Tech Worries
European stocks are seen opening narrowly mixed on Tuesday as China widened its crackdown on technology companies, citing data-security issues.
After ordering the removal of ride-sharing group Didi Chuxing from Chinese app stores, the Cyberspace Administration of China (CAC) on Monday announced it was investigating more companies that had been listed on Wall Street.
Asian markets traded mixed as elevated oil prices stoked worries about inflation and an early tapering in the U.S. Federal Reserve’s asset purchase program.
Oil extended gains from the previous session, with Brent and WTI futures hitting their highest since 2018, on expectations of a tighter market after oil producers ended days of talks without a new output deal.
Treasuries dipped and the dollar pulled back, while gold hovered near two-week highs as investors await the minutes from the Fed’s June policy meeting, due on Wednesday, for more clues on tapering.
The British pound extended gains after Prime Minister Boris Johnson revealed plans to lift most of England’s legal coronavirus restrictions from July 19, saying that people must learn to live with coronavirus.
In economic releases, factory orders, construction data and ZEW economic sentiment survey results from Germany are due later in the session. Eurozone retail sales figures and the region’s economic survey results may also influence trading.
Overnight, U.S. markets were closed for the Independence Day holiday.
European stocks closed higher on Monday as upbeat regional business activity data helped outweigh concerns about the spread of the delta variant of the coronavirus.
The pan European Stoxx 600 edged up 0.3 percent. The German DAX inched up 0.1 percent, France’s CAC 40 index gained 0.2 percent and the U.K.’s FTSE 100 advanced 0.6 percent.
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