European stocks seen inching higher as investors watch data, U.S. tech

European markets are set to inch higher Tuesday as global investors wait to see whether the dominant U.S. tech sector can recover momentum after last week’s rout, while awaiting key economic data due out of the euro zone.

Britain’s FTSE 100 is seen around 10 points higher at 5,947, Germany’s DAX is expected to climb around 28 points to 13,128 and France’s CAC 40 is set to nudge 5 points higher at 5,059, according to IG data.

Revised second-quarter GDP (gross domestic product) growth data for the euro zone are expected at 10 a.m. A flash estimate had shown the bloc’s economy contracting by 15% between April and June. At the same time, final second-quarter employment figures are expected.

European stocks are set for a mixed handover from Asia Pacific, where Australian, Korean and Japanese shares advanced despite Japan posting a second-quarter annualized GDP (gross domestic product) contraction of 28.1%. Mainland Chinese and Hong Kong shares broadly declined.

Stateside, U.S. futures are pointing higher Tuesday as Wall Street looks to recover from its worst tech sell-off in five months, driven by 2020’s market leaders Amazon, Apple, Microsoft and Facebook.

Tensions between Washington and Beijing remain on the radar after U.S. President Donald Trump on Monday again raised the idea of an economic “decoupling” from China.

Back in Europe, the U.K. is planning to ramp up its preparations to leave the European Union without a deal if no free trade accord can be reached this week. The Financial Times reported that Prime Minister Boris Johnson’s government intends to legislate to override aspects of the Withdrawal Agreement it signed in January, with the EU warning Monday that there will be no deal if this course of action is pursued.

Coronavirus concerns are also back on the agenda after the U.K. reported almost 3,000 new daily cases on both Sunday and Monday, with England’s deputy chief medical officer saying the situation is now a serious concern.

In corporate news, Reuters reported citing sources that Spanish lender Caixabank and state-owned Bankia are nearing an agreement to establish Valencia as their new joint headquarters, with other components of a possible takeover still under consideration.

British Airways parent IAG will hold its annual shareholder meeting Tuesday, with CEO Willie Walsh set to hand over the reins to Iberia CEO Luis Gallego as the troubled airline group seeks billions of euros from shareholders to weather the coronavirus storm. 

Earnings come from Royal Mail, Travis Perkins and Vistry Group before the bell.

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