European markets head for lower open, in retreat mode after Monday's rally

• European stocks are expected to open in negative territory on Tuesday, retreating from gains made in the previous trading session.
• London's FTSE is seen opening 21 points lower at 6,558, Germany's DAX down 55 points at 13,943, France's CAC 40 down 16 points at 5,777 and Italy's FTSE MIB 81 points lower at 23,170, according to IG.

LONDON — European stocks are expected to open in negative territory on Tuesday, retreating from gains made in the previous trading session.

London's FTSE is seen opening 21 points lower at 6,558, Germany's DAX down 55 points at 13,943, France's CAC 40 down 16 points at 5,777 and Italy's FTSE MIB 81 points lower at 23,170, according to IG.

The negative market open expected in Europe comes after a sharp rise for European stocks Monday; the pan-European Stoxx 600 ended the session up by 1.8%, with travel and leisure shares climbing 3.2% to lead gains as all sectors and major bourses entered positive territory.

Overnight, however, futures contracts tied to the major U.S. stock indexes traded lower in extended trading after the S&P 500 rallied more than 2% during regular trading hours for its best day since June. Stocks in Asia-Pacific also traded mixed on Tuesday.

The sharp rise for markets, and now an apparent slide, comes as Treasury yields continue to retreat from their highs from last week. The 10-year U.S. Treasury note yield dipped to a session low of 1.41% Monday before drifting back near the flatline. 

On Tuesday, investors are likely to pore over comments made by both Securities and Exchange Commission Chair nominee Gary Gensler and Federal Reserve Governor Lael Brainard for indications on where the U.S. economy is headed, and any hints on inflation expectations.

Data releases include German unemployment data and flash euro zone inflation data for February. Earnings come from HelloFresh, Man Group, Travis Perkins, Taylor Wimpey and Hotel Chocolat.

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– CNBC's Thomas Franck contributed to this market report.

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