data, oil price monitored after OPEC + talks abandon
European stocks were muted on Tuesday morning as investors watched oil markets closely after talks between members of the OPEC + oil alliance were abandoned.
The pan-European Stoxx 600 hovered 0.2% below the flatline after a choppy opening, autos shed 0.8% while oil and gas stocks climbed 0.5% on higher oil prices .
The timid start to European markets reflects a similar sentiment elsewhere overnight. In Asia-Pacific, markets struggled to orient in Tuesday morning’s trading as investors anticipate the Australian central bank’s decision on interest rates.
Meanwhile, US equity futures were flat in overnight trading Monday as Wall Street prepared to kick off the shortened holiday week with the S&P 500 at an all time high.
Oil prices remained at the center of concerns, reaching multi-year highs on Monday, after talks between OPEC and its oil-producing allies, a group known as OPEC +, were postponed indefinitely following the the group’s failure to agree on production policy.
Brent crude was up to around $ 77.50 a barrel at the start of trading in Europe, while US crude futures surged to around $ 76.60.
German industrial orders fell unexpectedly in May, official data showed Tuesday, down 3.7% on the month to mark their biggest drop since the first Covid lockdown of 2020. A Reuters poll of economists had produced a consensus forecast of a 1% increase following a revised increase of 1.2% in April.
May Eurozone retail sales and the ZEW Economic Sentiment Survey in Germany are also expected on Tuesday.
In terms of individual share price development, French rail manufacturer Alstom plunged 7.9% to the bottom of the Stoxx 600, after warning of significant cash outflows in the first half due to the integration of Bombardier’s rail operations.
At the top of the index, German pharmaceutical supplier Sartorius climbed 3.3% after raising its forward guidance.
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