European Stock Futures Edge Higher; Overall Sentiment Remains Weak

By Peter Nurse - European stock markets are expected to open higher Tuesday, attempting to rebound after a hesitant start to the week as investors fretted about rising interest rates and a deteriorating economic outlook.

At 02:00 ET (06:00 GMT), the DAX futures contract in Germany traded 1% higher, CAC 40 futures in France climbed 0.5%, and the FTSE 100 futures contract in the U.K. rose 0.4%.

European equities closed largely lower Monday as the new week continued September’s negative note, with investors concerned that aggressive monetary tightening to combat soaring inflation will push not only Europe, but much of the world, into recession.

Although stocks are seen opening higher, for the first time in four sessions, any gains are likely to be limited as any form of growth is likely to be hard to find for much of the rest of this year.

The European Central Bank is expected to raise interest rates further over its "next several meetings", ECB president Christine Lagarde said on Monday at a hearing of the European Parliament's Committee on Economic and Monetary Affairs, with these hikes designed to dampen demand.

Goldman Sachs downgraded equities to underweight in its global allocation over the next three months, saying rising real yields and the prospect of a recession suggest the rout has further to run.

“Current levels of equity valuations may not fully reflect related risks and might have to decline further to reach a market trough,” analysts at the influential U.S. investment bank said, in a note.

Investors will also be keeping an eye on developments in Italy after Giorgia Meloni’s right-wing coalition won Sunday’s election. The country’s first female leader faces a darkening economic outlook, high debt levels with rising bond yields, and energy price hikes in the wake of Russia’s invasion of Ukraine.

Additionally, the Bank of England will be in focus after the pound’s sharp selloff in the wake of new U.K. finance minister Kwasi Kwarteng announcing Britain’s biggest package of tax cuts in 50 years, which is likely to be funded by increased borrowing.

On Monday, BoE Governor Andrew Bailey attempted to soothe markets by stating that the bank will raise rates as much as necessary at its next meeting, but sterling’s rebound has been limited with the next get-together over a month away.

Oil prices edged higher Tuesday, rebounding from the lowest levels since January as markets weighed the potential for a reduction in supply even as recessionary concerns, tighter monetary policy, and a rally in the dollar dimmed the outlook for demand.

Major crude producers BP and Chevron said that they had cut production at some offshore oil platforms in the Gulf of Mexico in anticipation of Hurricane Ian.

Additionally, Iraq Oil Minister Ihsan Abdul Jabbar said on Monday the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, were monitoring the oil price situation, raising the possibility of the group cutting output at next week’s meeting.

By 02:00 ET, U.S. crude futures traded 1.2% higher at $77.65 a barrel, while the Brent contract rose 1.2% to $83.88. Both contracts sank by about $2 a barrel on Monday, adding on to Friday’s 5% slump.

Additionally, gold futures rose 0.6% to $1,642.30/oz, while EUR/USD traded 0.5% higher at 0.9650.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    EC2A 2BN
    United Kingdom

    T:  + 44 ( 0 ) 203 857 2000
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    United Arab Emirates
    T: + 00 971 44 22 888

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: