European equities are expected to open to choppy trade Tuesday amid investor nervousness as the impasse between Greece and its international creditors over its soon-to-end bailout program continues.
The FTSE (FTSE International: .FTSE) is seen opening down 8 points at 6,829, the German DAX (XETRA:.GDAXI) up 6 points at 10,669 and the French CAC (Euronext Paris: .FCHI) up 6 points at 4,657.
Concerns over ongoing Greek debt negotiations continue to weigh on market sentiment. On Monday, Greek Prime Minister Alexis Tsipras reiterated that his country would not extend its bailout.
Without doing so, Greece’s lenders-the troika of the European Central Bank, International Monetary Fund and European Commission – have said Greece will not receive a final tranche of aid under the current bailout plan. The ECB has also refused Greece’s request for a bridging loan to tide it over once its bailout officially ends February 28.
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German Chancellor Angela Merkel said on Monday that she would wait for Greece to make a sustainable proposal to repay its debts and other reforms and then discuss what to do next, Reuters reported.
The growing impasse has not gone unnoticed with markets in the U.S. and Asia trading lower on Greek concerns. On Sunday, U.S. Treasury Secretary Jack Lew told CNBC that “everybody’s got to tamp down the rhetoric a little bit.”
Read More G-20 chiefs plea for ‘cooler heads’ in Greek crisis
Meanwhile in Asia, stocks markets traded mixed against a backdrop of concerns over Greece and more pessimistic data from China adding to concerns of slowdown.
China’s consumer price index (CPI) rose 0.8 percent in January from a year ago period, below a Reuters consensus for a 1 percent gain. Wholesale prices, meanwhile, continued their declines. The producer price index fell an annual 4.3 percent, worse than the 3.8 percent expected decline.
In commodities markets, benchmark Brent crude oil prices remained below $ 58 a barrel on Tuesday as the International Energy Agency (IEA) said the United States will remain the world’s top source of oil supply growth until to 2020, defying expectations of a more dramatic slowdown in shale output growth, Reuters reported.
On Tuesday, investors will be watching for earnings reports from UBS, Michelin, TUI, Mediobanca, Intesa SanPaolo, Banca Popolare di Milano and Banca Popolare di Sondrio. No major data is due.
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