Where Main Street Meets Wall Street

European markets head for positive open, brushing off Wall Street losses

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European stocks are expected to open in positive territory on Tuesday with regional investors brushing off losses on Wall Street on Monday.

The U.K.’s FTSE index is seen opening 20 points higher at 7,033 and Germany’s DAX 41 points higher at 15,083, according to data from online trading platform IG. France’s CAC 40 is set to trade 9 points higher at 6,491 and Italy’s FTSE MIB up 75 points at 25,191, IG showed.

The positive open for Europe comes despite concerns over losses in Wall Street in the previous trading session that saw the tech-heavy Nasdaq Composite fall more than 2%.

Tech heavyweights Apple, Alphabet, Amazon and Microsoft all fell at least 2% while shares of Facebook slipped 4.9%. The blue-chip Dow shed more than 300 points, while the S&P 500 lost 1.3%. U.S. stock futures fell in overnight trading.

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Skittishness in the U.S. market has been prompted by a recent jump in bond yields that has caused investors to flee highly valued tech stocks, as higher rates make their future profits less attractive. The 10-year Treasury yield traded slightly up at 1.48% on Monday after hitting a high of 1.56% last week.

The losses rattled markets in Asia-Pacific overnight, and shares in the region declined. In Japan, the Nikkei 225 dropped 2.77%, leaving the Nikkei in correction territory briefly before the index pared some of its losses. Markets in mainland China remain closed on Tuesday for the holidays.

On the corporate front in Europe on Tuesday, U.K. food retailer Greggs will be releasing a trading update. Economic data releases include French industrial output, the latest Italian GDP reading, the U.K.’s new passenger cars registration and final purchasing manager’s index (PMI) data from across the region.

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– CNBC’s Yun Li and Eustance Huang contributed reporting to this story.



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