On Tuesday european stocks are heading for a slightly higher open as hopes of an impending economic recovery underpinned by persistently low interest rates continue to drive risk-on trade. Britain’s FTSE 100 is seen around 33 points higher at 6,789, Germany’s DAX is set to climb by around 31 points to 14,139 and France’s CAC 40 is expected to add around 11 points to 5,797, according to IG data.
The pan-European climbed to its highest point in almost a year on Monday, as the rollout of vaccines and associated optimism about the global recovery powered consecutive sessions of gains for stocks around the world. European shares are set for a strong handover from Asia-Pacific, where markets broadly advanced during Tuesday’s trade, led by stocks in Hong Kong and Japan.
Stateside, futures tied to the major indexes are indicating robust gains on Wall Street at Tuesday’s open as trading recommences following Monday’s Presidents’ Day holiday. The World Health Organization on Monday authorized the AstraZeneca/University of Oxford Covid-19 vaccine for emergency use, expanding access to the comparatively inexpensive shot around the world.
Economic data releases will be high on the agenda in Europe on Tuesday, with euro zone flash GDP and employment figures for the fourth quarter due at 10 a.m. London time. February’s ZEW economic sentiment index for both Germany and the wider euro zone is also expected at 10 a.m.