European stocks are heading for another negative open Tuesday as sentiment struggles to pick up in global markets.
Asia-Pacific markets fell Tuesday, as investors parsed the Chinese central bank’s decisions on key lending rates. In the U.S. overnight, S&P 500 futures were almost flat as the market came off its first losing week in more than a month.
That came after economic data raised concerns that the U.S. Federal Reserve may not begin cutting interest rates as soon, or by as much, as market participants expected this year. U.S. markets were closed Monday for the Presidents Day holiday.
CNBC Pro: Morningstar strategist names 3 under-the-radar picks for the current ‘stock picker market’
Equity markets have had a good start to the year, with the S&P 500 benching crossing 5,000 in the past month. However, ongoing political tensions and uncertainty over when the U.S. Federal Reserve will cut interest rates have raised questions about which sectors will perform strongly — leading a number of market players to say 2024 is a stock picker’s year.
Morningstar’s chief markets strategist, David Sekera, agrees. He said it’s “always a stock picker’s market,” but that this is even more pertinent this year.
He also named three under-the-radar stocks he likes right now.
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— Amala Balakrishner
CNBC Pro: ‘Hidden gems’: UBS names 5 global small-cap stocks — giving one 77% upside
European markets: Here are the opening calls
European markets are set to open in negative territory Tuesday.
The U.K.’s FTSE 100 index is expected to open 9 points lower at 7,719, Germany’s DAX down 49 points at 17,039, France’s CAC down 19 points at 7,745 and Italy’s FTSE MIB down 76 points at 31,676, according to data from IG.
Earnings are due from Barclays, InterContinental Hotels Group and Antofagasta. On the data front, euro zone current account figures for December are due to be released.
— Holly Ellyatt
