Growth concerns return, causing European markets to have a choppy open.
European stocks are predicted to open in a mixed state on Tuesday due to economic uncertainty and renewed concerns about Europe's growth prospects.
According to IG's data, the U.K.'s index is predicted to open 4 points higher at 8,253, Germany's index is expected to rise 23 points to 18,852, France's index is anticipated to increase by 19 points to 7,518, and Italy's index is forecasted to be 16 points higher at 33,610.
On Monday, European stocks finished higher as investors evaluated banking transactions and the preliminary composite PMI data for Germany and France, which indicated a decline in business activity in the manufacturing and services sector in September, affecting both Europe's largest economies and the entire euro zone region.
On Tuesday, market participants will closely monitor Commerzbank's shares after the stock dropped approximately 5.7% on Monday following German Chancellor Olaf Scholz's criticism of UniCredit's "hostile" and "unfriendly" actions towards the bank, as reported by Reuters.
After Italy's UniCredit announced it had increased its stake in the German lender to around 21% and submitted a request to boost the holding to up to 29.9%, his comments came shortly thereafter, suggesting a takeover bid might be on the cards.
Beijing announced policy easing measures, leading to gains in Asia-Pacific markets, with Chinese stocks climbing the most.
The PBOC announced that it would reduce the reserve requirement ratio for banks by 50 basis points, although it did not specify a timeline. Additionally, the seven-day reverse repurchase rate was cut from 1.7% to 1.5%, along with other measures.
On Monday, U.S. stock futures remained relatively stable despite the S&P 500 and Dow Jones Industrial Average both setting new record closing values.
Last week's rally continued, resulting in modest gains, after the U.S. Federal Reserve cut interest rates by half a percentage point. The fed funds rate now stands at a range of 4.75% to 5.00%.
Markets
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