European Shares Seen Up Before German Vote On Spending Plans

RTTNews | 160 days ago

(RTTNews) - European stocks may open on a positive note Tuesday ahead of a German parliament vote on the country's spending plans set to take place later in the day.

The proposal seeks to exempt defense spending from debt limits and create a 500-billion-euro infrastructure plan fund.

The CDU/CSU bloc, led by Friedrich Merz, is likely to secure the necessary majority votes for the constitutional amendments that would pave the way for the reform measure.

In an interview with public broadcaster ARD on Sunday, Merz said the "situation has worsened in recent weeks", citing Trump's overtures to Russia to end the Ukraine war and his wavering commitment to NATO. "That is why we have to act fast," Merz said.

Traders may also follow the latest geopolitical developments and assess their impact on financial markets.

The Kremlin confirmed that Russian President Vladimir Putin would talk to the U.S. President Donald Trump by phone on Tuesday.

Elsewhere, Israel carried out airstrikes in the Gaza Strip, southern Lebanon and southern Syria on Monday, killing at least 10 people.

In economic releases, economic confidence figures from Germany and foreign trade data from the euro area are awaited later in the day.

Across the Atlantic, reports on industrial production, housing starts and import and export prices may attract attention, although activity is likely to be somewhat subdued ahead of the Federal Reserve's monetary policy announcement on Wednesday.

The Fed is widely expected to leave interest rates unchanged, with traders likely to scrutinize the accompanying statement as well as officials' latest projections for clues about the outlook for rates amid much uncertainty about the economic impact of President Trump's trade policies.

Elsewhere, the Bank of Japan is set to hold the benchmark rate at the current level of 0.5 percent on Wednesday.

The Bank of England is expected to take another pause on its rate-cutting path Thursday while Switzerland's central bank looks set to cut interest rates for the last time in the current cycle.

U.S. stock futures slid while Asian markets were mixed, giving up some early gains on renewed optimism over China's economy.

The dollar index was little changed while gold edged up and held above the $3,000 level mark.

Oil prices rose for a third straight session, with the outlook for China's economy and geopolitical risk in the Middle East remaining in focus.

U.S. stocks rose for a second straight session on Monday after Treasury Secretary Scott Bessent said he is "not worried" about the recent market downturn.

Overall gains were limited due to growth concerns and trade uncertainties. Retail sales rose less than expected in February and saw downward revisions for January.

Factory activity in New York State plummeted the most in nearly two years in March and homebuilder sentiment dropped to a seven-month low in March, adding to concerns about the economic outlook.

A model utilized by the Federal Reserve Bank of Atlanta projected a -2.1 percent contraction in Q1 2025, down from the March 7 estimate of a 1.6 percent contraction.

The Dow gained 0.9 percent, the S&P 500 rose 0.6 percent and the tech-heavy Nasdaq Composite edged up by 0.3 percent.

European stocks closed higher on Monday after China said it would take measures to revive consumption in the world's second-largest economy.

The pan European STOXX 600 surged 0.8 percent. The German DAX climbed 0.7 percent while France's CAC 40 and the U.K.'s FTSE 100 both rose by 0.6 percent.

Singapore Stock Market Tipped To Open In The Red

The Singapore stock market has climbed higher in five straight sessions, improving almost 70 points or 1.6 percent along the way. The Straits Times Index now sits just above the 4,255-point plateau although investors may lock in gains on Tuesday. The global forecast for the Asian markets is soft, with profit-taking likely on the menu. The European markets were mixed and the U.S. bourses were down and the Asian markets are also expected to open under water.

RTTNews | 16 minutes ago

Rally May Stall For Malaysia Stock Market

The Malaysia stock market has moved higher in three straight sessions, collecting almost 15 points or 0.9 percent along the way. The Kuala Lumpur Composite Index now sits just above the 1,600-point plateau although it's likely to open to the downside on Tuesday. The global forecast for the Asian markets is soft, with profit-taking likely on the menu. The European markets were mixed and the U.S. bourses were down and the Asian markets are also expected to open under water.

RTTNews | 46 minutes ago

Japan Stock Market May Spin Its Wheels On Tuesday

The Japan stock market has moved higher in back-to-back sessions, gathering almost 200 points or 0.5 percent along the way. The Nikkei 225 now rests just above the 42,800-point plateau although it may be stuck in neutral on Tuesday. The global forecast for the Asian markets is soft, with profit-taking likely on the menu. The European markets were mixed and the U.S. bourses were down and the Asian markets are also expected to open under water. The Nikkei finished modestly higher on Monday following gains from the financial shares, weakness from the technology stocks and a mixed picture from the automobile companies. For the day, the index advanced 174.53 points or 0.41 percent to finish at 42,807.82 after trading between 42,681.37 and 43,201.42. Among the actives, Nissan Motor accelerated 3.15 percent, while Mazda Motor shed 0.55 percent, Toyota Motor eased 0.10 percent, Honda Motor climbed 1.01 percent, Softbank Group soared 3.53 percent, Mitsubishi UFJ Financial dipped 0.11 percent, Mizuho Financial collected 0.79 percent, Sumitomo Mitsui Financial added 0.41 percent, Mitsubishi Electric rose 0.35 percent, Sony Group slumped 1.11 percent, Panasonic Holdings lost 0.49 percent and Hitachi fell 0.24 percent.

RTTNews | 1h 1min ago

KOSPI May Run Out Of Steam On Tuesday

The South Korea stock market has tracked higher in three straight sessions, collecting almost 80 points or 2.6 percent along the way. The KOSPI now sits just shy of the 3,210-point plateau although it's due for consolidation on Tuesday. The global forecast for the Asian markets is soft, with profit-taking likely on the menu. The European markets were mixed and the U.S. bourses were down and the Asian markets are also expected to open under water.

RTTNews | 1h 17min ago