European Shares Set To Follow Asian Peers Lower

(RTTNews) - European stocks look set to open on a tepid note Tuesday as investors await cues from earnings and key inflation readings.

Asian markets declined, oil prices fell nearly 2 percent and U.S. stock futures traded lower, while the dollar and sovereign bonds rose as the COVID-19 pandemic shows another sign of resurgence.

Adding to jitters, Hong Kong authorities said they would implement an electronic health code system to restrict movements of people infected with COVID-19, as well as overseas arrivals, a system similar to what's already in place in mainland China.

On the earnings front, JPMorgan Chase and Morgan Stanley are set to unveil their quarterly earnings results on Thursday, while BlackRock, Citigroup and Wells Fargo are among those reporting on Friday.

Snack and beverage giant PepsiCo is due to release its second quarter results before the start of trading later in the day.

The U.S. dollar marched higher as investors await the release of reports on consumer and producer price inflation, retail sales and industrial production this week for further clues on the interest-rate path later this year.

U.S. stocks fell overnight on growth worries. The tech-heavy Nasdaq Composite fell 2.3 percent to snap a five-day winning streak as Tesla CEO Elon Musk sought to terminate his Twitter deal. The S&P 500 lost 1.2 percent and the Dow shed half a percent.

European stocks fell for the first time in three days on Monday, with concerns over an energy supply crunch and fresh Covid-19 curbs in China weighing on sentiment.

The pan European Stoxx 600 dropped half a percent. The German DAX tumbled 1.4 percent and France's CAC 40 index gave up 0.6 percent while the U.K.'s FTSE 100 ended on a flat note.