European Shares Set For Firm Start

European stocks are likely to open higher on Tuesday despite a lukewarm lead from Wall Street.

Asian markets were broadly higher after Shanghai set out plans for end of a painful Covid-19 lockdown. China’s biggest city will reopen in stages after reporting three days of zero community transmission.

A pullback in the dollar supported greenback-priced bullion and commodities, though oil prices slipped after EU foreign ministers failed in their attempts on Monday to get Hungary to lift its veto of the bloc’s proposed oil embargo on Russia.

Growth worries linger, with Goldman Sachs Senior Chairman Lloyd Blankfein urging companies and consumers to brace for an imminent recession in the United States.

Elon Musk said that the world’s largest economy was “probably” in a recession that may last up to 18 months.

In economic releases, the labor market statistics from the U.K. and revised quarterly national accounts from eurozone will be published later in the day.

U.S. stocks ended a volatile session mostly lower overnight amid growth worries as China data disappointed, New York state manufacturing activity unexpectedly contracted in May and the outlook for EU growth and inflation worsened.

The Dow edged up marginally while the S&P 500 slipped 0.4 percent and the tech-heavy Nasdaq Composite lost 1.2 percent.

European stocks also ended mixed on Monday as investors reacted to disappointing economic data from the U.S., Europe and China. The pan European Stoxx 600 ended flat with a positive bias.

The German DAX dipped half a percent and France’s CAC 40 index slid 0.2 percent while the U.K.’s FTSE 100 added 0.6 percent.

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