European stocks are likely to open higher on Tuesday after data showed China’s economy steadied further in June.
China’s official manufacturing PMI for June came in at 50.9, beating forecast for a score of 50.4.
Elsewhere, data out of Japan showed that the country’s industrial production in May dropped 8.4 percent month-on-month due to the fallout from the Covid-19 pandemic, while the unemployment rate rose for the third month in a row.
Developments surrounding the coronavirus pandemic also remain in focus, with World Health Organization chief Tedros Adhanom Ghebreyesu warning Monday that “the worst is yet to come.”
Asian markets advanced as the latest data signaled that China’s gradual recovery from the coronavirus slump remains on track. The dollar retreated and oil prices slipped, while gold held close to a near eight-year peak.
Flash inflation numbers from euro area and revised quarterly national accounts data from the U.K. are due later in the session, headlining a busy day for the European economic news.
U.S. stocks ended on a buoyant note overnight as strong housing data as well as hopes for more stimulus measures from the Federal Reserve and Congress helped investors shrug off reports showing sharp spikes in new coronavirus cases over the weekend.
The Dow Jones Industrial Average climbed 2.3 percent to reach its best closing level in nearly four weeks, while the S&P 500 gained 1.5 percent and the tech-heavy Nasdaq Composite added 1.2 percent.
European stocks rose on Monday, with encouraging data from Germany, the euro zone and China helping underpin investor sentiment.
The pan European Stoxx 600 gained 0.4 percent. The German DAX rallied 1.2 percent, France’s CAC 40 index rose 0.7 percent and the U.K.’s FTSE 100 advanced 1.1 percent.
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