The stock will see a slight recovery but the negative outlook persists

LONDON, May 10 (Reuters) – European stock indices opened higher on Tuesday, with risk appetite recovering somewhat after a sharp fall on Monday, but fears of slower growth still weigh on markets, analysts said.

Asian stock markets plummeted overnight to a two-year low, before losing ground. read more

The slump in stock markets so far this month is attributed to the tightening of key central banks and the slowdown in economic growth.

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Central banks in the US, UK and Australia raised interest rates last week, pushing investors further tight as policymakers battled inflation.

Although these drives continued on Tuesday, markets saw a slight recovery, with US stock futures suggesting that this will continue until Wall Street opens.

At 0752 GMT, the MSCI Global Equity Index (.MIWD00000PUS)The stock, which monitors shares in 50 countries, touched its lowest level in the previous session since late 2020.

Europe’s STOXX 600 was up 0.8% (.STOXX)But the gain was small compared to its 6.6% loss so far in May.

The S&P 500 futures are up about 0.8%, while the Nasdaq futures are up 1.3%.

Peter McCullum, Mizuho’s interest rate strategist, said it was a natural correction again after the fall of the previous session. Traders can position themselves to take advantage of any stimulus coming from the key US consumer price index (CPI) data on Wednesday, he said.

“If headline inflation comes in and shows that the CBI is heading in the right direction every month, it could lead to even worse Fed and price rises,” McCullum said.

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There was little change in the dollar index, which touched a 20-year high on Monday. Meanwhile, the Australian dollar suffered from fears of a slowdown in economic growth, which fell to a two-year low. read more

China’s export growth has slowed to its weakest level in almost two years, as data shows that the central bank has promised to increase support for the sluggish economy. read more

Oil prices soared, recovering after a sharp decline on Monday, which was a combination of strong dollar, growing recession fears and the Govt-19 lockout in China. read more

Concerned that Russia could cut off gas flow to Europe, German officials are preparing an emergency package. read more

France’s EU Minister of Foreign Affairs has said that EU members could reach an agreement this week on the EU Commission’s proposal to ban all oil imports from Russia. read more

Germany’s 10-year dividend rose 1.1% to 1 basis point, while European bond yields were slightly higher.

The U.S. 10-year yield was 3.0499%, down from 3.203% on Monday – the highest since 2018.

Gold also went some way to recover from the decline on Monday, rising about 0.4%.

Elsewhere, Bitcoin rose 5.5%, recovering some of its 11.6% Monday decline, its biggest daily drop since May 2021. At about $ 31,736, the cryptocurrency has lost more than half of its value since reaching an all-time high of $ 69,000 in November.

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Report by Elizabeth Howcraft; Bradley Beret Editing

Our standards: Thomson Reuters Trust Principles.

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