On Tuesday european stocks are expected to open higher, buoyed by hopes that an economic recovery following the coronavirus pandemic is not far off. London’s FTSE is seen opening 37 points higher at 6,759, Germany’s DAX 106 points higher at 13,945, France’s CAC 40 up 37 points at 5,654 and Italy’s FTSE MIB 192 points higher at 22,627, according to IG.
European markets look set to start the day on a strong note, buoyed by positive sentiment in the U.S. overnight; U.S. stock futures moved higher early Tuesday as Wall Street looked to bounce back from a rough week ahead of President-elect Joe Biden’s inauguration Wednesday.
Futures contracts tied to the Dow Jones Industrial Average rose 166 points. Those for the S&P 500 and the Nasdaq 100 also traded in positive territory. Investors on Tuesday will be looking out for earnings: Bank of America and Goldman Sachs will report their fourth-quarter results before the bell, with Netflix’s numbers coming after the market closes.
Investors around the world will also be looking out for comments from U.S. President-elect Joe Biden’s nominee for Treasury Secretary Janet Yellen. Former Federal Reserve Chair Yellen will tell the Senate Finance Committee on Tuesday that the country is headed for a major recession unless they “act big,” according to a copy of her prepared remarks obtained by NBC News.
“Neither the President-elect, nor I, propose this relief package without an appreciation for the country’s debt burden. But right now, with interest rates at historic lows, the smartest thing we can do is act big. In the long run, I believe the benefits will far outweigh the costs,” Yellen will say.
Meanwhile, the Wall Street Journal reported that Yellen is expected to make clear that the U.S. doesn’t seek a weaker dollar. Stocks in Asia-Pacific traded mixed on Tuesday as investors awaited Yellen’s remarks.