Tracking global sentiment after the Wall Street rebound
LONDON – European stocks were mixed on Tuesday morning, seeking direction after Wall Street halted the fall sparked by a hawkish turn by the Federal Reserve.
Back in Europe, European Central Bank President Christine Lagarde gave markets a boost on Monday by offering an optimistic outlook for the eurozone economy and noting that the bloc is “clearly in a different situation” that of the United States with regard to inflation.
Britain will begin negotiations on Tuesday to join a trans-Pacific trade deal the government sees as essential to its post-Brexit future. Composed of Japan, Canada, Australia, Vietnam, New Zealand, Singapore, Mexico, Peru, Brunei, Chile and Malaysia, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership will abolish 95% of customs duties on goods and services between members.
In corporate news, the French media group Vivendi expects an investor vote on Tuesday on a proposed split of its iconic Universal Music Group. The move faces opposition from activist hedge funds who claim it disproportionately benefits the company’s largest shareholder, Vincent Bolloré, compared to smaller investors.
On the data front, June data on consumer confidence is expected from a number of eurozone countries on Tuesday, with a flash read of the entire block expected at 3 p.m. London time.
In terms of individual stock price developments, Swedish real estate group Samhallsbyggnadsbolaget fell 4.7% at the start of trading, while Irish construction dealer Grafton Group rose 3.7% after the announcement of an agreement with the Finnish manufacturer of protective equipment IKH.
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