European stocks set for tepid open, tracking global caution
European markets are set for a muted open on Tuesday as global investors seek a catalyst, with eyes on the Ukraine-Russia conflict and economic indicators.
Britain’s FTSE 100 is seen around 4 points lower at 7,555, Germany’s DAX is set to shed around 14 points to 14,504 and France’s CAC 40 is expected to drop around 4 points to 6,727, according to IG data.
Markets remain closely attuned to developments in Ukraine and prospects for central bank policy around the world in the face of surging inflation.
The United States and Europe are considering new punitive sanctions against Russia after allegations of civilian killings in Ukraine, with Ukrainian President Volodymyr Zelenskyy warning that more deaths are likely to be discovered in the towns recaptured from Russian forces.
Reuters reported, citing a source familiar with the matter and a U.S. Treasury spokesperson, that Russia’s latest sovereign bond coupon payments have been halted, with the U.S. Treasury yet to authorize the payments for processing by correspondent bank JPMorgan.
The U.S. is also expected to ask the U.N. General Assembly to suspend Russia from the Human Rights Council, U.S. Ambassador Linda Thomas-Greenfield said on Monday, after images emerged on Sunday of civilian bodies lining the streets in the recaptured town of Bucha, on the outskirts of Kyiv.
Shares in Asia-Pacific were mixed in Tuesday trade, and the Reserve Bank of Australia kept its cash rate target unchanged. U.S. stock futures were also flat in early premarket trade after investors bought the dip in technology shares following recent weakness.
On the data front, a host of final PMI readings for March are due on Tuesday morning from across the euro zone and the U.K.
