Markets are expected to open lower, concerned about China's Covid and US inflation. The Eurostoxx 50 opens at 3,839.62 points (-0.49%), the CAC 40 at 6,555.81 points (+0.12%), the DAX 40 at 14.192.78 points (-0.64%), the FTSE 100 at 7,618.31 points (-0.67%), the SMI at 12,528.61 points (+0.17%), the AEX at 714.74 points (-1.38%), the BEL 20 at 4.188.00 points (-0.79%), the IBEX 35 at 8,585.00 points (-0.25%), the DJIA at 34,308.08 points (-1.19%), the Nasdaq at 13,411.96 points (-2.18%), the S&P 500 at 4,412.53 points (-1.69%) and the Nikkei 225 at 26,311.94 points (-1.90%).

In terms of exchange rates, the change from the close in New York shows EUR/USD opening at 1.0884 (-0.02%), EUR/JPY at 136.29 (-0.15%) and USD/JPY at 125.23 (-0.13%).

Major European stock markets are expected to open sharply lower on Tuesday, as investors fear Covid-19-related containment measures in China will exacerbate supply problems and weigh on economic growth. Markets are also concerned about the war in Ukraine and the prospect of a rapid and pronounced tightening of monetary policy by the Federal Reserve (Fed) to combat inflation. At 7:40 a.m., the CAC 40 futures contract was down 65 points, or 1%, according to data from broker IG Markets. The DAX 40 contract was down 178 points, or 1.3%, and the FTSE 100 was down 46 points, or 0.6%.

Meanwhile, the war in Ukraine has led to a sharp rise in commodity prices, adding to inflationary pressures around the world. Against this backdrop, investors will be watching closely for the March U.S. consumer price index, due at 2:30 p.m. According to the forecasts of economists interviewed by the Wall Street Journal, inflation could reach 8.4% over one year, after 7.9% in February. The White House warned Monday night that inflation should be "extraordinarily high" in March because of the war in Ukraine, whileA survey conducted by the New York Federal Reserve (Fed) showed that one-year inflation expectations hit a record high in March. Respondents to the survey believe that inflation in the U.S. will reach 6.6% in March 2023, compared to 6% expected in February.

Wall Street closed in the red on Monday, penalized by technology stocks, while the rise in bond yields continues in anticipation of monetary tightening by the Fed. The Dow Jones Industrial Average (DJIA) ended down 1.2 percent at 34,308.08 points, and the broader S&P 500 index lost 1.7 percent at 4,412.53 points. The tech-heavy Nasdaq Composite fell 2.2% to 13,411.96 points. In Asia, the major stock markets were mixed on Tuesday. In Tokyo, the Nikkei index was down 1.6% in late trading. The Hang Seng Index of the Hong Kong Stock Exchange gained 0.9% and the Shanghai Composite advanced by 1.1%.

The sell-off in U.S. Treasuries intensified on Monday ahead of the release of U.S. inflation figures, and the yield on the 10-year stock recorded its seventh straight session of gains to end at 2.782%, its highest level since January 2019.

The euro is retreating Tuesday morning against the dollar, which is benefiting from the widespread rise in sovereign bond yields. The U.S. Treasury yield curve steepened, with the longer end rising 6-9 basis points. The U.S. Consumer Price Index for March is the main indicator expected on Tuesday. Very high inflation in the U.S. will support expectations of a rapid and sharp tightening of the Federal Reserve's monetary policy, CBA said. A 50 basis point increase in the federal funds rate at each of the next two Fed meetings is not yet fully priced in by the market, which implies a potential upside for the dollar.

Oil prices are rising Tuesday morning as traders doubt that a compromise to revive the Iran nuclear deal will be reached in the near term. The arrival on the market of additional Iranian oil supply is unlikely as Tehran has said that the Iran nuclear deal will not be revived.clarified that the nuclear deal signed in 2015 was still valid but was "in the emergency room," ANZ said. The U.S. has said that reviving the deal could be a long shot in light of Iran's new demands, the bank adds. In addition, some analysts are starting to cut their forecasts of $130 or more for a barrel of crude now that North Sea Brent crude, the global market benchmark, has fallen 23 percent from a near 14-year high of $127.98 a barrel hit a month ago. At 7:25 a.m., the June Brent contract was up $2.06, or 2.1 percent, at $100.54 a barrel, while Nymex-listed light sweet crude (WTI) for May was up $2.16, or 2.3 percent, at $96.45 a barrel.