European stocks are seen opening higher on Tuesday despite fresh concerns about the health of China’s property sector, with Fantasia Group Holdings announcing late Monday it had missed debt payment.
Asian stocks extended a global rout amid the U.S. debt ceiling standoff and concerns that soaring oil prices will put further upward pressure on inflation.
U.S. stock futures rose, helping regional markets came off from their day’s lows. Markets in China remain shut until Friday for the Golden Week holidays.
Copper eased on a firmer dollar, which edged toward a one-year high ahead of key U.S. payrolls data due later this week.
Gold struggled amid expectations the Federal Reserve will soon start tapering its economic support.
U.S. oil prices rose to the highest level in seven years after OPEC and other major producers decided not to increase their output by more than previously agreed.
In economic releases, French industrial output data, the U.K.’s new passenger cars registration figures and final purchasing manager’s index results from across the region will be released later in the session.
U.S. stocks fell sharply overnight as high commodity prices, a surge in Treasury yields and worries about growth rendered the underlying mood bearish.
The Dow shed 0.9 percent, the S&P 500 fell 1.3 percent and the tech-heavy Nasdaq Composite lost 2.1 percent.
European stocks also ended lower on Monday on worries that the regulatory crackdowns and a collapse at Evergrande could hurt an already fragile Chinese economy and weigh on global growth.
The pan European Stoxx 600 dropped half a percent. The German DAX declined 0.8 percent, France’s CAC 40 index gave up 0.6 percent and the U.K.’s FTSE 100 eased 0.2 percent.
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