European Markets Expected To Rebound

(RTTNews) - Stock markets in Europe are expected to open on a positive note on Tuesday tracking the positive sentiment in Asia as well as the mixed sentiment in Wall Street on Monday. Caution ahead of the release of CPI numbers from the U.S. on Wednesday is seen limiting gains.

Wall Street had closed on a mixed note on Monday amidst interest rate worries, rising bond yields and anxiety ahead of Wednesday's CPI update. The Dow Jones Industrial Average rallied 0.86 percent to finish trading at 42,297.12. The Nasdaq Composite however slipped 0.38 percent to close trading at 19,088.10.

European markets had closed in the red on Monday amidst rising bond yields and renewed concerns about inflation. Switzerland's SMI plunged 0.59 percent. The pan-European Stoxx-50 dropped 0.50 percent. Germany's DAX lost 0.41 percent whereas France's CAC 40 erased 0.30 percent. U.K.'s FTSE 100 slipped 0.29 percent.

Current indications from the European stock futures indicate a mildly positive sentiment. The DAX Futures (Mar) is trading 0.53 percent higher. The CAC 40 Futures (Feb) has rallied 0.86 percent. The FTSE 100 Futures (Mar) has also edged up 0.02 percent. The pan-European Stoxx 50 Futures (Mar) has increased 0.72 percent. The SMI Futures (Mar) had closed 0.22 percent lower on Monday.

American stock futures are trading above the flatline. The US 30 (DJIA) is trading 0.16 percent higher, whereas the US500 (S&P 500) is trading 0.28 percent above the flatline.

Asian stock markets are trading on a mostly positive note after an overwhelmingly negative trade on Monday. Japan's Nikkei 225 which was closed on Monday has however dropped 1.9 percent. DJ New Zealand has edged down 0.05 percent. China's Shanghai Composite has surged 2.1 percent whereas Hong Kong's Hang Seng has rallied 1.8 percent. India's Nifty 50 has gained 0.64 percent. Australia's S&P ASX 200 has also rallied 0.48 percent. South Korea's KOSPI has added 0.34 percent.

The Dollar Index, a measure of the U.S. dollar's strength relative to six currencies, has eased 0.32 percent overnight to 109.60 versus the high of 110.18 touched on Monday. The EUR/USD pair is flat at 1.0244 whereas the GBP/USD pair has edged down 0.03 percent to trade at 1.2199.

Amidst the dollar's weakness, the yellow metal has rebounded. Gold Futures for February settlement is trading at $2,685.41, which is 0.25 percent lower than the previous close of $2,678.60.

Oil prices have eased after a massive surge on Monday triggered by concerns about supply of oil from Russia. Brent Crude Futures for March settlement slipped 0.54 percent to trade at $80.57 whereas WTI Crude Futures for March settlement erased 0.43 percent to trade at $76.97.

Markets would also be watching out for speeches by Philip Lane of ECB and Sarah Breeden of Bank of England.

Major earnings updates due from the region include Games Workshop, Suedzucker as well as IntegraFin Holdings.