LONDON, May 10 (Reuters) – European stock indexes opened higher on Tuesday, with a risk appetite showing some recovery after Monday’s sharp decline, but analysts said fears of lower growth still weigh on markets.
Asian stocks fell to their lowest level in nearly two years overnight before losing losses. Read more
The downturn in stock markets so far this month is due to a combination of tight tightening by major central banks and slowing economic growth.
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Last week, central banks in the United States, Britain and Australia raised interest rates and investors called for more tightening as politicians battled rising inflation.
Although those engines retained on Tuesday, markets marked a slight recovery, which U.S. stock futures predicted would continue until Wall Street opened.
At 07:52 GMT, the global stock index MSCI (.MIWD00000PUS), which tracks stocks in 50 countries, traded unchanged, reaching its lowest level since the end of 2020 earlier in the session.
The European STOXX 600 rose 0.8% (.STOXX), but profit was small compared to a loss of 6.6% so far in May.
S&P 500 futures rose about 0.8%, while Nasdaq futures rose 1.3%.
Peter McCallum, an interest rate strategist at Mizuho, said the rebound was a natural correction after the downturn from the previous session. Traders could also position themselves to take advantage of any spike in sentiment coming from key US Consumer Price Index (CPI) data on Wednesday, he said.
“If core inflation comes up and shows that the monthly consumer price index is moving in the right direction, that makes the argument for a potentially fatter Fed and price increases,” McCallum said.
The dollar index changed slightly, reaching a 20-year high on Monday. Meanwhile, the Australian dollar fell to its lowest level in nearly two years, hurt by fears of a slowdown in economic growth. Read more
China’s export growth has slowed to its weakest level in almost two years, data show, as the central bank has pledged to boost support for the slowing economy. Read more
Oil prices rose after recovering from a sharp drop on Monday due to a combination of a stronger dollar, growing fears of a recession and a blockade of COVID-19 in China. Read more
Fearing that Russia could cut off gas flows to Europe, German authorities are preparing an emergency package, which could include taking control of critical companies. Read more
EU members could reach an agreement this week on the European Commission’s proposal to ban all oil imports from Russia, said the French Minister for European Affairs. Read more
European government bond yields were slightly higher, with German 10-year bond yields rising by 1 basis point to 1.1%.
The 10-year yield in the United States was 3.0499% after falling after reaching 3.203% on Monday – a level not seen since 2018.
Gold also managed to recover from Monday’s decline, up about 0.4%.
Elsewhere, bitcoin rose 5.5 percent, recovering part of its 11.6 percent decline on Monday, its biggest daily decline since May 2021. At about $ 31,736, the cryptocurrency has lost more than half its value. since reaching an all-time high of $ 69,000 in November.
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Report by Elizabeth Hawcroft; Edited by Bradley Peret
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