LONDON — European stocks are expected to open higher on Tuesday, continuing a recovery seen at the start of the week.
The UK’s FTSE index is seen opening 17 points higher at 7,132, Germany’s DAX 46 points higher at 13,298, France’s CAC 40 up 23 points at 5,928, and Italy’s FTSE MIB 75 points higher at 21,934, according to data from IG.
The positive open for Europe comes as global markets appear to be staging a comeback rally after a tumultuous week last week. Asia-Pacific markets were mostly buoyant overnight and bitcoin continued a recent rebound while US stock futures also rose (US markets were closed on Monday for the Juneteenth holiday).
The rebound in positive sentiment comes after global market turbulence as investors assessed the prospect of more aggressive Federal Reserve rate hikes and rising chances of a recession.
Last week, there was a flurry of central bank action, with the Fed raising its benchmark funds rate by 75 basis points, its largest hike since 1994. The Bank of England also implemented its fifth rate rise in a row and the European Central Bank also announced that it plans to create a new tool to tackle the risk of euro zone fragmentation.
There are no major earnings or data releases in Europe on Tuesday.