European stocks poised to rebound ahead of key inflation update
LONDON — Futures data pointed to a positive open for European stocks on Tuesday as investors await key data on the economic impact of the US-Iran war.
Regional Stoxx 50 futures were up 0.6% at 6:30 a.m. (1:30 a.m. ET) in London. Futures contracts linked to the FTSE 100 rose 0.3%, while futures contracts linked to the French CAC 40 and German DAX rose 0.1% and 0.5% respectively.
The pan-European Stoxx 600 index fell to a one-week low on Monday as hopes faded for an end to the war in Iran.
On Tuesday, investors await euro zone flash inflation data to be released at 10am UK time. The print will shed light on the impact of the conflict in the Middle East and the resulting rise in oil and gas prices on prices in May.
Inflation in the euro area rose to 3% in April from 2.6% in March, well above the European Central Bank’s 2% target. As a large net energy importer, Europe is particularly vulnerable to energy shocks.
According to LSEG data, markets are currently pricing in a 94% chance that the ECB will raise interest rates by 25 basis points at its meeting later this month.
On Monday, US President Donald Trump told CNBC that he doesn’t care whether peace talks with Iran fail.
“I really don’t care. I couldn’t care less,” he said, adding that the protracted negotiations were “getting very boring.”
European investors are also monitoring developments in the Russia-Ukraine war after Moscow launched a major airstrike on cities across Ukraine early Tuesday.
Last week, NATO and EU officials condemned Russia after one of its drones accidentally crashed into an apartment building in Romania near the country’s border with Ukraine.
The EU is currently preparing its 21st sanctions package against Moscow.
Other data coming out of Europe on Tuesday includes trade balance figures from Switzerland, unemployment in Spain and mortgage lending figures from the UK.
