Investors react to economic data, corporate earnings

European stocks are heading for a tepid open to Tuesday’s trading as investors react to a slew of corporate earnings, after positive manufacturing data around the world drove stocks higher to start the week. Britain’s FTSE 100 is seen around 11 points lower at 6,022, Germany’s DAX is set to […]

European stocks are heading for a tepid open to Tuesday’s trading as investors react to a slew of corporate earnings, after positive manufacturing data around the world drove stocks higher to start the week.

Britain’s FTSE 100 is seen around 11 points lower at 6,022, Germany’s DAX is set to gain around 13 points to 12,660 and France’s CAC 40 is expected to climb by around 9 points to 4,885, according to IG data.

Stocks swung higher Monday after July’s final IHS Markit manufacturing PMI (purchasing managers’ index) reading showed manufacturing activity across the euro zone expanded for the first time since April 2019.

Strong manufacturing data out of the U.S. also helped boost sentiment, and stocks in Asia Pacific broadly advanced overnight after the Reserve Bank of Australia opted to leave its monetary policy stance unchanged.

Investors will continue to monitor U.S. fiscal stimulus talks, with Congressional Democrats and the White House on Monday hinting at progress as lawmakers look to hammer out a new coronavirus relief bill.

Meanwhile, the World Health Organization (WHO) on Monday cautioned that there may never be a “silver bullet” to defeat the coronavirus pandemic, after Friday saw the largest worldwide increase in new cases to date.

In Europe, Commerzbank has elected Hans-Joerg Vetter, the former head of the Landesbank Baden-Wuerttemberg (LBBW), as the new chairman of its supervisory board in open defiance of the wishes of top shareholder Cerberus Capital Management.

Tuesday marks another busy day for major corporate earnings, with BP, Diageo, Bayer and Hugo Boss among those reporting.

Euro zone producer prices for June are also expected at 10 a.m. London time.

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