European markets to open lower as hopes of a Fed rate cut fade
European markets are set to open lower Tuesday as diminished hopes of a rate cut from the U.S. Federal Reserve this month continue to dampen investor sentiment.
The FTSE 100 is seen around 11 points lower at 7,538, the DAX is set to open around 70 points down at 12,474 and the CAC 40 is seen slipping around 15 points to 5,574.
Markets are struggling to shrug off sharply reduced expectations that the Fed will deliver a large rate cut by the end of the month, following surprisingly strong U.S. job growth for June.
Asian stocks mostly continued to slide Tuesday, led by Hong Kong’s Hang Seng index, which fell 0.8% as leader Carrie Lam said the controversial extradition bill which sparked mass protests in the Asian financial hub “is dead.”
In corporate news, Deutsche Bank workers began to leave offices in New York, London, Sydney and Tokyo Monday as the German lender started to slash 18,000 jobs in a 7.4 billion euro ($8.3 billion) restructure. The bank’s shares took a further hammering as Wall Street reacted with skepticism to its plans for long-term restoration.
Danske Bank on Monday cut its 2019 earnings forecast for the second time as a touch trading environment and higher anti-money laundering costs weighed on the embattled bank.
Orange CEO Stephane Richard will learn on Tuesday whether he has been convicted or cleared of misconduct in a French fraud trial.
International relations will also be in focus for investors after U.S. President Donald Trump attacked British Prime Minister Theresa May and her Washington ambassador on Monday, following the leak of confidential memos in which the diplomat called Trump’s administration “uniquely dysfunctional” and “inept.”
Meanwhile, Turkey proceeded with deal for Russian missile system despite US and NATO warnings. Turkey, a NATO partner, faces several consequences for accepting the Kremlin’s missile system, including economic sanctions and removal from the supply chain for the F-35, America’s most expensive weapons system.
Sales at British retailers rose at their slowest average pace on record over the past year as worries about Brexit weighed on consumers, a survey showed on Tuesday, according to Reuters.
Average sales growth weakened to 0.6% in the 12 months to June, the British Retail Consortium, an industry group, said, the slowest increase since it began its records in 1995.
Source: CNBC
