European markets head for broadly higher open as geopolitical tensions remain in focus
European markets are expected to open broadly higher Tuesday as traders keep an eye on geopolitical tensions in the region.
The U.K.’s FTSE 100 index is expected to open 3 points higher at 8,768, Germany’s DAX up 64 points at 22,857, France’s CAC flat, down 1 point at 8,194 and Italy’s FTSE MIB 185 points higher at 38,587, according to data from IG.
Earnings are set to come from Capgemini and the InterContinental Hotels Group. On the data front, French inflation data is due, as is the latest ZEW survey of economic sentiment in Germany and Europe.
Geopolitical tensions between the U.S. and Europe are likely to remain in focus for European markets this week as U.S. officials prepare for talks with Russia to end the war in Ukraine, with officials in Kyiv and Europe being left out of the discussions.
European leaders held an emergency summit in Paris on Monday to discuss how to respond to the apparent decision to sideline Europe, and while they agreed on increasing defense spending, there was no alignment over whether to send peacekeeping troops to Ukraine after any peace deal.
Asia-Pacific markets mostly rose overnight as traders reacted to comments by Chinese President Xi Jinping on Monday, signaling support for the country’s private sector and urged businesses to “show their “talents.”
U.S. stock futures rose Monday night to kick off a holiday-shortened trading week.
The U.K.’s unemployment held steady at 4.4% in the three months to December, data from the country’s Office for National Statistics showed on Tuesday.
The figure was flat on the previous quarter, when unemployment in the U.K. hit its highest level since the three months to May 2024. On an annual basis, the jobless rate was up by 0.5 percentage points.
A hike in employer National Insurance contributions — a tax on workers’ income — announced by Britain’s government in October, was met with backlash as employers warned rising costs would limit their ability to take on new staff. In a November survey by the Confederation of British Industry, almost half of businesses said they planned to trim their workforces to cope with increasing expenses.
Finance Minister Rachel Reeves has defended her fiscal policies, arguing that she is “fighting every single day … to kick start the economy.
Source: CNBC
