Europe on the Bounce: Tech Stocks Rebound
European stocks are expected to rebound modestly Tuesday as investors return to equities after a two-day sell off in the tech sector and prepare for three central bank meetings later this week.
Britain's FTSE 100 is likely to add around 40 points at the opening bell, according to financial bookmakers IG, with stocks getting a boost from a weaker pound, which continues to underperform on foreign exchange markets as Prime Minister Theresa May attempts to form a government.
Sterling was marked at 1.2656 against the U.S. dollar in early European trading, having fallen some 2.3% since the day before last Thursday's general election. Further pressure could come later today, however, in the form of May inflation data from the Office for National Statistics, which is expected to show consumer prices accelerating at a four-year high of 2.7%. The reading falls just two days before the Bank of England's next rate decision Thursday.
In Europe, the DAX performance index and the CAC-40 are also poised to trade higher at the opening bell, but may not find direction until the ZEW Institute publishes its monthly benchmark of investor sentiment at 10:00 BST.
This article was written by a staff member of TheStreet.
