European Shares Set To Open Flat On Weak China Data

European stocks are seen opening largely unchanged on Tuesday as the global COVID-19 caseload surged past 217 million and official data showed China’s service industry shrank in August for the first time since the height of the pandemic earlier last year.

Asian stocks traded mostly higher, though Chinese and Hong Kong markets fell after China imposed strict limits on how minors can play online video games.

In addition, China’s securities regulator said it plans to rein in the country’s private equity and venture capital funds.

Gold firmed up as the dollar slipped to a new two-week trough against a basket of currencies. Oil prices fell in Asian trade as traders weighed the prospect of additional OPEC+ production and the restoration of crude output in the U.S. after Hurricane Ida.

Unemployment figures from Germany and flash consumer price data from euro area are due later in the session, headlining a busy day for the European economic news.

Across the Atlantic, reports on home prices, consumer confidence and Chicago-area business activity may attract attention.

U.S. stocks ended mostly higher overnight, with optimism over economic recovery and easing fears of a sudden tapering in monetary stimulus helping underpin sentiment.

The S&P 500 rose 0.4 percent and the Nasdaq Composite gained 0.9 percent to reach new record closing highs while the Dow slid 0.2 percent.

European stocks ended on a flat note Monday after the release of disappointing euro zone data.

The pan European Stoxx 600 ended flat with a positive bias. The German DAX and France’s CAC 40 index edged up 0.2 percent and 0.1 percent, respectively while the U.K. markets were closed for a bank holiday.

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