February 3 News, as global markets stabilize after a brief sell-off in cryptocurrencies and precious metals, major European stock indices are expected to open higher on Tuesday. According to IG’s pre-market data, the UK FTSE 100 index is expected to remain flat, Germany’s DAX index is up about 0.5%, France’s CAC 40 index is up 0.6%, and Italy’s FTSE MIB index is expected to rise 0.4%, indicating a rebound in market risk sentiment.
In the past few days, global assets experienced significant volatility. From last Friday through the weekend, gold, silver, and Bitcoin all declined simultaneously, triggering a mix of safe-haven buying and sell-offs. However, precious metal prices rebounded on Monday, easing market tension. Meanwhile, S&P 500 futures continued to rise after a strong start to the new US trading month, providing external support for the European session.
The rebound in Asia-Pacific markets has also boosted global risk appetite. US President Trump announced that the US has reached a new trade agreement with India, with Indian Prime Minister Narendra Modi agreeing to expand procurement of US goods. Trump also stated that India will reduce crude oil imports from Russia and instead purchase more energy from the US and some Latin American countries. Driven by this news, India’s benchmark Nifty 50 index opened about 5% higher on Tuesday, injecting confidence into global stock markets.
On the fundamentals front, European investors will focus on the latest guidance from corporate and macroeconomic data. Advertising giant Publicis is about to release earnings, and inflation data from France and unemployment rates from Spain will also be published, which could influence market expectations for Europe’s economic outlook and monetary policy path.
Against the backdrop of external market stabilization, macroeconomic positives, and corporate earnings expectations, European stock markets may see a window for sentiment recovery, with short-term funds beginning to reassess risk asset allocation structures. (CNBC)
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