European markets head for lower open as investors digest latest data
- European stocks are expected to open lower on Tuesday with investors digesting the latest economic data from the region and beyond.
- London's FTSE is seen opening 26 points lower at 7,136, Germany's DAX down 28 points at 15,860, France's CAC 40 down 14 points at 6,677 and Italy's FTSE MIB 56 points lower at 25,957, according to IG.
LONDON — European stocks are expected to open lower on Tuesday with investors digesting the latest economic data from the region and beyond.
London's FTSE is seen opening 26 points lower at 7,136, Germany's DAX down 28 points at 15,860, France's CAC 40 down 14 points at 6,677 and Italy's FTSE MIB 56 points lower at 25,957, according to IG.
The lower open for European markets comes after data released on Monday showed euro zone economic sentiment eased more than expected in August, from a record high in July. Investors will also be looking at the latest data out of China that showed slowing Chinese factory activity growth in August.
China's factory activity grew at a slower pace in August as compared with the previous month, data released Tuesday showed. The official manufacturing Purchasing Managers' Index for August came in at 50.1, against July's reading of 50.4. PMI readings above 50 represent expansion, while those below that level signal contraction.
Shares in Asia-Pacific mostly slipped overnight after the data release. Meanwhile, Hong Kong-listed shares of Tencent and Netease fell 3.18% and 3.46%, respectively, by Tuesday afternoon in the city after new rules published Monday by China's National Press and Publication Administration showed plans to limit the time that those under 18 years spend playing video games to just three hours a week.
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Meanwhile, U.S. stock futures rose slightly in overnight trading as the S&P 500 looks to wrap up its seventh straight month of gains at a record high.
Tuesday marks the last trading day of August, and major averages are poised to post solid gains. Investors are awaiting a key jobs report on Friday ahead of the Labor Day weekend. Economists polled by Dow Jones expect 750,000 jobs were created in August and the unemployment rate fell to 5.2%.
In Europe on Tuesday, data releases include German unemployment data for August, French inflation numbers for August and a final second-quarter GDP reading for Italy. There are no major earnings releases.
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– CNBC's Eustance Huang and Yun Li contributed to this report.
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