European Stock Futures Edge Lower; Chinese Exports Surge Boosts Sentiment

European Stock Futures

European Stock Futures Edge Lower; Chinese Exports Surge Boosts Sentiment

European stock markets are expected to open marginally lower Tuesday, handing back some of the previous session’s strong gains, but losses are likely to be small as China’s trade data pointed to solid global demand.

At 2:05 AM ET (0605 GMT), the DAX Futures contract in Germany traded 0.1% lower, CAC 40 Futures in France dropped 0.1% and the FTSE 100 Futures contract in the U.K. fell 0.2%.

Data released earlier Tuesday showed China’s export rose at a faster-than-expected rate of 25.6% in August from a year earlier, from a 19.3.% gain in July. Economists had forecast growth of 17.1%, and the beat suggested resilience in global demand despite the headwinds caused by delta variant-driven Covid-19 outbreaks and high raw material prices.

The major indices in Europe posted gains of approaching 1% on Monday, helped by orders for German Factory Goods  unexpectedly surging in July, hitting a post-reunification high.

The positive economic news continued Tuesday as German Industrial Average climbed 1.0% on the month in July, and attention will quickly turn to the release of the country’s closely-watched ZEW survey  for September for further guidance.

Investors will also look to the open on Wall Street later in the session, after Monday’s holiday, for further reaction in the wake of Friday’s disappointing September U.S. payrolls report, with just 235,000 jobs created compared with 750,000 expected.

In corporate news, Adecco  will be in the spotlight after the Swiss staffing company announced plans to buy QAPA, France’s second-largest provider of digital workforce solutions, for 65 million euros ($77 million).

Deutsche Telekom  also reported a share-swap deal with Softbank  to increase its stake in U.S. unit T-Mobile, while also selling its Dutch unit to a consortium of private equity houses Apax and Warburg Pincus for 5.1 billion euros ($6.05 billion).

The FTSE MIB climbed down by  0.04% to 26,260.30. In the cash markets, the DAX  Germany was trading down 0.09%  to 15,907.65. CAC 40  in France  rose  by 0.01 % to 6,742.22 while the FTSE 100  in the U.K. were up by 0.28% to 7,169.35. ,at the time of writing.

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