European markets lose momentum due to economic and political uncertainty in the US and Turkey.
Regionals indexes in Germany and France closed mixed on Monday, with investors following U.S. debt ceiling negotiations, an inconclusive Turkish election that must now proceed to a runoff vote, and a higher forecast for EU inflation this year.
The European Commission on Monday raised its forecasts for inflation for the euro area to 5.8% this year and 2.8% in 2024, and said it expects the European Central Bank to continue with rate hikes, further weakening lending conditions.
However, it also revised its gross domestic product estimates higher, forecasting 1% growth this year, up from a previous 0.8% estimate.
The latest gauge on the state of the euro zone’s health comes today when a preliminary estimate of the euro zone’s first-quarter gross domestic product is released.
European markets: Here are the opening calls
European markets are expected to open flat to lower on Tuesday morning.
The U.K.’s FTSE 100 index is expected to open 1 point lower at 7,773, Germany’s DAX 2 points lower at 15,908, France’s CAC unchanged at 7,414 and Italy’s FTSE MIB 40 points lower at 26,946, according to data from IG.
Earnings are set to come from Siemens Energy, Euronext, Vodafone, Britvic, Greggs, and Boohoo. Data releases in focus Tuesday include a preliminary estimate of the euro zone’s first-quarter gross domestic product.
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