
European Stocks Called Lower as Markets Pull Back After Softer China Trade Data
European stocks are set to open lower Tuesday following a weaker session in Asia as investors pull back from recent highs amid thinning liquidity into the peak of the summer holidays and modestly weaker trade data from China.
Britain's FTSE 100 is slated to fall around 0.2% at the start of trading, according to financial bookmakers IG, thanks in part to lower global oil prices and a moderately stronger pound. Germany's DAX performance index will likely slip 15 points, or 0.11%, at the opening bell while the CAC-40 in Paris is priced to drifted around 0.1%.
The European single currency slipped to 1.1805 against the U.S. dollar after Germany's statistics agency, Destatis, reported a much larger-than-expected 2.8% decline in exports from the region's largest economy in June, the biggest in nearly two years, although the seasonally-adjusted trade surplus still rose to €21.2 billion ($25.03 billion).
Stocks in Asia were largely muted overnight, although prices drifted higher despite slightly softer-than-expected traded data from China, which showed a narrowing of that country's trade surplus with the United States and a 2.2% month-on-month decline in steel exports. The region-wide MSCI Asia ex-Japan index gained 0.23% by 06:45 London time while Japan's Nikkei 225 fell 0.3% to close at 19,1966.01 points as a stronger yen held down gains.
Global oil prices extended modest losses in overnight trading and into the European session as OPEC's 'technical committee' meet in Abu Dhabi to work on ways for member states to improve their compliance with the 1.8 million barrel per day cuts the cartel agreed to extended into March 2018 in order to stabilise falling prices.
West Texas Intermediate crude futures for September delivery were marked 0.36% lower at $49.21 while Brent contracts for October, the global benchmark, were seen 0.40% lower at $52.18.
Wall Street futures are pointing to a softer open for stocks Tuesday, with the Dow Jones Industrial Average poised to end its nine-day winning streak, according to early prices, with a 4 point decline. The broader S&P 500 is looking at a 2.5 point, or 0.1%, fall at the opening bell while the Nasdaq is slated to open unchanged from its Tuesday close of 6,383.17 points.
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