European Shares Seen Up Before German Vote On Spending Plans

RTTNews | 72 days ago
European Shares Seen Up Before German Vote On Spending Plans

(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.

read more
Japan Data On Tap For Friday

Japan Data On Tap For Friday

Japan is scheduled to release a batch of data on Friday, headlining a busy day for Asia-Pacific economic activity. On tap are April numbers for unemployment, industrial production retail sales, construction orders and housing starts, plus May figures for Tokyo inflation.
RTTNews | 29 minutes ago
U.S. Dollar Falls After Tariff Ruling

U.S. Dollar Falls After Tariff Ruling

The U.S. dollar weakened against its major counterparts in the New York session on Thursday, as a federal court ruled against Trump's tariffs, dealing a blow to a key part of his economic agenda.
RTTNews | 3h 35min ago
U.S. Economic Shrinks Slightly Less Than Previously Estimated In Q1

U.S. Economic Shrinks Slightly Less Than Previously Estimated In Q1

A report released by the Commerce Department on Thursday showed the U.S. economy shrank by slightly less than previously estimated in the first quarter of 2025. The Commerce Department said real gross domestic product edged down by a revised 0.2 percent in the first quarter compared to the previously reported 0.3 percent dip. Economists had expected the modest decrease to be unrevised.
RTTNews | 8h 17min ago
U.S. Weekly Jobless Claims Climb More Than Expected To 240,000

U.S. Weekly Jobless Claims Climb More Than Expected To 240,000

First-time claims for U.S. unemployment benefits rose by more than expected in the week ended May 24th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims climbed to 240,000, an increase of 14,000 from the previous week's revised level of 226,000. Economists had expected jobless claims to inch up to 230,000.
RTTNews | 8h 19min ago
Hormel Foods Recalls 256K Pounds Of Canned Beef Stew Product

Hormel Foods Recalls 256K Pounds Of Canned Beef Stew Product

Hormel Foods Corp. is recalling around 256,185 pounds of canned beef stew product that may be contaminated with foreign material, specifically wood, according to the U.S. Department of Agriculture's Food Safety and Inspection Service or FSIS. The Tucker, Georgia-based branded food major's recall involves 20-oz. metal cans containing "Dinty Moore BEEF STEW" with "BEST BY FEB 2028".
RTTNews | 8h 54min ago
UK Vehicle Manufacturing Logs Weakest Start To Year Since 2009: SMMT

UK Vehicle Manufacturing Logs Weakest Start To Year Since 2009: SMMT

UK automotive manufacturing registered its weakest start to a year since 2009, the Society of Motor Manufacturers & Traders, or SMMT, said Thursday. Car and commercial vehicle production decreased 15.8 percent on a yearly basis to 59,203 units in April. Auto production fell to the lowest level for the month since 1952, excluding 2020 when the first Covid lockdown effectively saw manufacturing c
RTTNews | 9h 22min ago
Bay Street Looks Set To Start On Firm Note

Bay Street Looks Set To Start On Firm Note

Canadian shares look headed for a firm start on Thursday, with encouraging earnings by Royal Bank of Canada and Canadian Imperial Bank of Commerce, and a U.S. court ruling against U.S. President Donald Trump's sweeping tariff moves set to lift sentiment.
RTTNews | 9h 36min ago