Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European Stock Futures Lower; Geopolitical Tensions Mount

Stock Markets Aug 02, 2022 01:55AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Peter Nurse

Investing.com - European stock markets are expected to open lower Tuesday, on raised geopolitical concerns as well as fears about the global economic slowdown.

At 02:00 AM ET (0600 GMT), the DAX futures contract in Germany traded 0.6% lower, CAC 40 futures in France dropped 0.4%, and the FTSE 100 futures contract in the U.K. fell 0.3%.

Stocks markets in Europe have received a negative handover from Asia following media reports in Taiwan suggesting that U.S. House of Representatives Speaker Nancy Pelosi will visit the territory claimed by Beijing later in the day.

Such a move would raise tensions between the world’s two economic superpowers, with Chinese foreign ministry spokesman Zhao Lijian stating on Monday that it would lead to “very serious developments and consequences”.

Additionally, the United States accused Russia of using Ukraine's biggest nuclear power plant as a "nuclear shield" by stationing troops there, risking a nuclear accident.

These developments come as manufacturing PMI data from the United States, Europe and Asia, released over the last couple of days, showed a slowdown in factory activities in July, adding to recession fears.

Also, the Reserve Bank of Australia raised its cash rate 50 basis points to 1.85% on Tuesday and flagged yet more hikes ahead, continuing the aggressive tightening that many central banks have adopted to combat inflation, risking a global economic slowdown.

On the corporate front, the main earnings release Tuesday will come from BP (LON:BP), with the U.K. energy giant expected to follow rival Shell's (LON:SHEL) lead by posting strong quarterly results as high oil and gas prices more than offset the negative impact of its withdrawal from Russia.

The European economic data slate is largely empty Tuesday, with Spanish unemployment the only release of note.

Oil prices dropped Tuesday, continuing the previous session’s selloff on fears a global manufacturing downturn will hit demand ahead of a meeting of top producers to discuss future output.

The Organization of Petroleum Exporting Countries and allies, a group known as OPEC+, is set to meet on Wednesday to discuss future supply.

The group had recently rolled back pandemic-era cuts to oil supply, and is now expected to keep production steady despite pressure from the United States to increase output.

By 02:00 AM ET, U.S. crude futures traded 0.8% lower at $93.19 a barrel, while the Brent contract fell 0.9% to $99.09.

Additionally, gold futures rose 0.1% to $1,788.35/oz, while EUR/USD traded 0.1% higher at 1.0268.

European Stock Futures Lower; Geopolitical Tensions Mount
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Antoni Boixeda
Antoni Boixeda Aug 02, 2022 3:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden nnnn Bide nnnn , jamas hubiera imaginado una persona tant conflictiva como este Bidennnn
Tims Mopheme
Tims Mopheme Aug 02, 2022 3:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nancy mustnt visit the island , shes gonna get killd , China liberation army will shut down her plane !!
Chris Cash
ChrisCash Aug 02, 2022 3:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
really?
Kris Jay
Kris Jay Aug 02, 2022 3:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hard to understand the run up in stocks when the news is not good.  Any good news was in the past, Q2. Powell doesnt appear to be any more aware of economics than Yellen, calling 2.5% neutral rate when inflation is still 9-18% depending on the item.   October is famous for its market crashes. Post
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email