By Peter Nurse
Investing.com - European stock markets are expected to edge higher Tuesday, with a dump of economic data offering a view of the outlook for the region and the wider global economy.
The main European indices closed higher Monday, continuing the recent positive tone that stemmed from hopes that the Federal Reserve will shortly slow its aggressive monetary tightening campaign as inflation showed signs of slowing.
However, data due Tuesday is expected to show that the inflation picture in Europe is less encouraging, suggesting that the European Central Bank still has some way to go with its rate hikes if it is to return inflation to target in the medium term.
French consumer price inflation is expected to rise 1.0% on the month in October, after falling 0.6% last month, while Spanish CPI is seen rising 0.4% on the month, after dropping 0.7% the prior month.
Earlier Tuesday, data showed that Chinese industrial production grew less than expected in October, while retail sales unexpectedly shrank, heralding more weakness in the world’s second-largest economy.
Global investors will also be keeping an eye on the G20 Summit in Indonesia, with the apparent easing of tensions in U.S.-China relations helping the tone.
Turning to the corporate sector, Credit Suisse (SIX: CSGN ) announced it has agreed to sell a significant part of its Securitized Products Group and other related financing businesses to Apollo Global Management (NYSE: APO ), as the Swiss bank seeks to restructure its business.
Oil prices edged lower Tuesday, continuing the previous session’s selloff as fresh Covid woes in China weighed on the global demand outlook.
The number of reported cases in China climbed over the weekend as a number of cities remained in forms of lockdown. The economic data out of China disappointed earlier Tuesday, the latest sign that the world's second-largest economy is struggling with the protracted Covid curbs.
The Organization of the Petroleum Exporting Countries cut its 2022 global oil demand growth forecast for a fifth time since April, by 100,000 barrels a day, citing mounting economic challenges.
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