Title: European Stock Futures Higher; Eurozone Growth Data Due
May 17, 2022 02:00AM ET
European stock markets are expected to open stronger Tuesday after recent declines, but concerns about a fragile global economic recovery remain high.
At 2 a.m., DAX futures in Germany were trading 1% higher, CAC 40 futures in France climbed 0.8%, and FTSE 100 futures in the U.K. rose 0.5%.
European equities weakened last month, with the DAX down 1.4%, the CAC 40 down 3.7% and the FTSE 100 down 2% on fears that higher interest rates to fight inflation, COVID locks in China and the war in Ukraine will slow the global economic recovery.
Further evidence of that slowdown came Monday from weak retail sales and factory production figures in China, while the New York Fed's Empire State manufacturing index showed an abrupt drop in May.
France's unemployment rate fell to its lowest level in 14 years in the first quarter, official data showed Tuesday, but that was only a small drop to 7.3%, while the number of claimants in the United Kingdom fell by about 57,000 in April, bringing the jobless rate down to 3.7%.
Later in the session, the second estimate of eurozone GDP for the first quarter is expected to show modest growth of 0.2% for the quarter and 5.0% for the year.
The war in Ukraine remains the focus of investor attention. Kiev said Monday that its troops defending the country's second-largest city, Kharkiv, have pushed back Russian forces and advanced to the border with Russia.
In addition, Finland and Sweden will submit their formal membership applications at NATO headquarters in Brussels this week.
In the corporate sector, Daimler Truck will be in the spotlight after the German commercial vehicle maker raised its 2022 revenue forecast as strong customer demand allows it to raise prices.