European equity markets are expected to open mixed on Tuesday. The Eurostoxx 50 opens at 3,848.68 points (+0.54%), the CAC 40 at 6,589.35 points (+0.72%), the DAX 40 at 14.163.85 points (+0.62%), the FTSE 100 at 7,616.38 points (+0.47%), the SMI at 12,475.08 points (+0.78%), the AEX at 719.70 points (+0.23), the BEL 20 at 4.216.29 points (+0.58%), the IBEX 35 at 8,699.00 points (+0.94%), the DJIA at 34,411.69 points (-0.11%), the Nasdaq at 13.332.36 points (-0.14%), the S&P 500 at 4,391.69 points (-0.02%), the Nikkei 225 at 26,974.42 points (+0.65%).
In terms of foreign exchange rates, the change from the close in New York shows EUR/USD opening at 1.0773 (-0.08%), EUR/JPY at 138.08 (+0.84%) and USD/JPY at 128.16 (+0.91%).
European equity markets are expected to open mixed on Tuesday, after a four-day break for the Easter weekend. Investors will react to the Russian offensive in eastern Ukraine, as well as to the comments of James Bullard, the president of the Federal Reserve (Fed) of St. Louis.Federal Reserve (Fed) President James Bullard, who ruled out the need to raise interest rates by more than 50 basis points at a time on Monday. At 7:35 a.m., the CAC 40 futures contract was losing 4.8 points, or 0.1 percent, according to data from broker IG Markets. The DAX 40 contract was up 27 points, or 0.2 percent, and the FTSE 100 was up 16 points, or 0.2 percent.
Wall Street ended slightly lower Monday after a hesitant session, weakened by rising bond yields and energy prices. The Dow Jones Industrial Average (DJIA) gave up 0.1% to 34,411.69 points. The broader S&P 500 index lost 0.02 percent to 4,391.69 points. The tech-heavy Nasdaq Composite fell 0.1% to 13,332.36 points. This week's quarterly results will provide insight into how companies are handling inflation and who is doing a better job of passing on price increases to their customers, says Katie Nixon, chief investment officer for wealth management at Northern Trust. "Price pressures are going to be pretty intense," she adds. "Everyone is going to focus on the impact on margins."
In Asia, markets presented a mixed picture Tuesday. The Nikkei index was up 0.7% in late Tokyo trading, while the Hang Seng on the Hong Kong stock exchange was down 2.1%. The Shanghai Composite Index was unchanged as the People's Bank of China (PBOC) and China's foreign exchange authority jointly pledged to increase support from financial institutions for companies affected by the impact of the Covid-19 pandemic.
The yield on the 10-year U.S. Treasury bond, the market's benchmark security, is retreating Tuesday morning, after ending the previous day at its highest level since 2018, at 2.861%. By 7:30 a.m., the rate stood at 2.845%. The Fed is expected to continue tightening monetary policy by raising the federal funds rate by 50 basis points at the end of its May meeting, analysts say.
The euro fell Tuesday against the dollar as geopolitical tensions and a worsening economic outlook supported demand for safe-haven currencies.
Oil prices were little changed Tuesday morning after closing Monday at their highest level since the beginning of the month, due to concerns about global energy supplies. At 7:20 a.m., the June North Sea Brent contract was up 12 cents at $113.28 a barrel, while Nymex-listed May light sweet crude (WTI) was down 13 cents at $108.08 a barrel.