European markets head for lower open; inflation data in focus

  • European markets are expected to open lower on Tuesday following a sell-off in U.S. tech stocks at the start of the week and as investors inflation data.
  • London's FTSE is seen opening 91 points lower at 7,035, Germany's DAX down 200 points at 15,210, France's CAC 40 down 74 points at 6,308 and Italy's FTSE MIB down 267 points at 24,301, according to IG.

European markets are expected to open lower on Tuesday following a sell-off in U.S. tech stocks at the start of the week and as global markets turn their focus on inflation data.

London's FTSE is seen opening 91 points lower at 7,035, Germany's DAX down 200 points at 15,210, France's CAC 40 down 74 points at 6,308 and Italy's FTSE MIB down 267 points at 24,301, according to IG.

The lower open seen for Europe comes after negative trading sentiment in Asia-Pacific markets overnight following a sell-off in tech stocks on Monday that weighed down major U.S. indexes.

Investors exited stocks like Apple and Microsoft, pushing the Dow Jones Industrial Average and the S&P 500 off their record highs. Both of those stocks lost at least 2% to start the week.

Investors around the world are also focused on the latest inflation data this week; China released data Tuesday that showed consumer prices data in April jumped 0.9% from a year ago, slightly missing the 1% forecast by analysts in a Reuters poll. However, the producer price index rose 6.8%, beating the 6.5% projected by analysts polled by Reuters.

U.S. inflation data is released Wednesday amid growing concerns that the Federal Reserve will be prompted to tighten its monetary policy stance as prices rise along with the reopening of the global economy.

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In the U.K., the queen's speech takes place on Tuesday, in which the British government sets out which laws it intends to pass in the months ahead.

Earnings come from Ubisoft, Bilfinger and Thyssenkrupp and Hugo Boss holds an AGM Tuesday. Data releases include Germany's ZEW survey of economic sentiment for May, and OPEC publishes its latest monthly oil market report.

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— CNBC's Thomas Franck contributed reporting to this story.

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