(MENAFN– ecpulse)
European shares opened in a cautious manner Tuesday, with the political scandal surrounding Spain is set to dilute the positive tone seen across markets.
- STOXX Europe 600 declined 0.22 percent or 0.65 points to 296.73
- Euro Stoxx 50 dropped 0.34 percent or 9.13 points to 2,677.56
The focus now shifts to Spain after Prime Minister Mariano Rajoy rejected calls by opposition to resign over alleged links to a suspect in a payments scandal, following the release of text messages between him and a former party treasurer who is under investigation for fraud and money laundering.
Rajoy said the text messages published in the local media Sunday shows nothing improper in his dealings with Luis Bárcenas, the former treasurer of the premier`s Popular Party. Rajoy added that he will not give in to "blackmail" and would complete his term to fulfill the people`s mandate.
As far as economic data are concerned, investors await UK Consumer Price Index (CPI) and Eurozone trade data as well as the results of German ZEW survey of investor confidence. The German ZEW survey, which provides an overview of German investor’s confidence, is expected to hit a 40.0 in July.
- France`s CAC 40 lost 0.38% to 3,864.01
- German DAX edged 0.29% down to 8,211.06
- British FTSE 100 inched 0.14% higher to 6,595.22
Across the Atlantic, two U.S. reports will attract close attention, industrial production and CPI inflation report after Monday’s retail sales data added to signs of a slowdown in economic growth.
Global investors will closely examine Bernanke`s semi-annual testimony to congressional committees on July 17-18, for further clues on when the central bank would start tapering its monetary stimulus.
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