The major European stock indexes are expected to open lower on Tuesday in the wake of lower U.S. markets and mixed-to lower equity prices in Asia. Most of the price action is being fueled by geopolitical concerns. Weighing on the minds of traders is the closely watched Chinese annual parliamentary meeting, ongoing U.S.-China trade negotiations and another round of Brexit talks between U.K. and EU negotiators in Brussel.
At 03:11 GMT, the U.K.'s FTSE 100 Index is trading slightly higher at 7134.39, up 27.66 or +0.39%. Both Germany's DAX and France's CAC are called unchanged to lower.
Asian Shares Mostly Lower
The major Asia-Pacific stock indexes were mostly lower with Chinese equities bucking the trend to post a slight gain. The primary focus for investors was the Chinese annual parliamentary meeting at which leaders of the world's second largest economy announced it has cut its growth target.
On Tuesday, National People's Congress Premier Li Keqiang said the country must be prepared for a "tough struggle" as it faces a "grave and more complicated environment."
The new official economic growth target in 2019 will be 6.0 to 6.5 percent, lower than the growth of 6.6 percent in 2018, the slowest pace since 1990.
In China, the Shanghai Index settled at 3054.25, up 26.67 or +0.88%. In Japan, the Nikkei 225 Index traded 21726.28, down 95.76 or -0.44% and in Australia, the S&P/ASX 200 fell to 6199.30, down 18.10 or -0.29%.
South Korea's KOSPI Index settled at 2179.23, down 11.43 or -0.52% and in Hong Kong, the Hang Seng Index managed to rebound late in the session to move higher at 28961.60, up 2.01 or +0.01%.
The news from the Chinese annual parliamentary meeting wasn't a complete surprise since recent economic data had pointed toward a slowing in the economy mostly due to the impact of its trade dispute with the United States.
The goal of Chinese officials at this time is to guide the economy through a tumultuous period in the wake of excess debt and downturn in economic activity. Economic growth is on hold, but conditions could begin to improve if the economy receives a healthy dose of domestic stimulus and a trade deal is struck. These events would raise investor sentiment globally.
U.S. Equity Markets
The early futures trade points toward a higher opening after Monday's steep decline with the blue chip Dow up about 43 points, the benchmark S&P 500 Index trading higher by 0.16% and the tech-based NASDAQ Composite, up around 0.19%.
The major U.S. equity indexes plunged on Monday on profit-taking amid concerns that a U.S.-China trade deal had been fully-priced into the markets. Technically over-bought conditions also weighed on prices.
This article was originally posted on FX Empire
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