The FTSE 100 and the FTSE 250 both began Tuesday’s session in decline, slumping by 0.3% and 0.6% margins respectively. These movements follow investors’ concerns ahead of the release of service and manufacturing PMI data from England, Europe, and the United States scheduled for later in the day. This data is expected to give a strong indication of the direction that economies will go.
Several major European markets followed FTSE’s decline, with France’s CAC slipping by 0.8% while Germany’s DAX endured a 0.9% slump.
In addition to the PMI data release, a sustained oil decline and consistent rise in COVID cases in Europe have contributed to FTSE’s morning slump. While Brent crude futures slid by 1% to $78.87 per barrel in early trading, crude futures declines by 1.3% to $75.76 per barrel.
In Asia, stock markets endured a mixed day of trade, with the Hang Seng falling by 1.1%, closing in on a two-week low. According to Naeem Aslam, chief market analyst at AvaTrade, this decline is largely influenced by the slowdown of economic growth in China during the second half of the year: “Beijing is facing the conundrum of deciding whether to ease its policies to accommodate markets,” Aslam remarked.
Over in the U.S., the Dow Jones looked set to open at 0.2% lower on Tuesday morning, while the NASDAQ was expected to experience a 0.3% decline.
