Investing.com - European stock markets are expected to open in muted fashion Tuesday as investors await key corporate results as well as manufacturing activity data for the region.
Manufacturing PMI data due
The main European indices recorded healthy gains during July, with the pan-Europe Stoxx 600 up 2%, helped by signs that European consumer inflation had peaked.
However, the aggressive monetary policy tightening that the European Central Bank has undertaken to curb inflation has had an impact on growth in the region.
Data from China earlier in the session showed the Caixin/S&P Global manufacturing purchasing managers' index fell to 49.2 in July from 50.5 in June, indicating that factory activity in the second largest economy in the world contracted in yet another sign of the country’s post-pandemic recovery's struggles.
British store prices fall
Data from the British Retail Consortium, released early Tuesday, showed that prices in U.K. stores fell for the first time in two years, coming in 0.1% lower in July than in June, while annual inflation dropped to 7.6% in July from 8.4% the prior month.
The Bank of England meets on Thursday, and is widely expected to raise interest rates for the 14th consecutive meeting as it continues to battle the highest inflation rate among the major industrialized nations.
HSBC announces $2 billion buyback
HSBC (LON: HSBA ) will be in the spotlight Tuesday after Europe’s largest bank announced a $2 billion buyback after reporting a higher profit and revenue for the first half of 2023, aided chiefly by stronger margins amid rising interest rates.
The Asia-focused bank also raised its near-term return on tangible equity goal, a key performance target.
Crude prices drift lower on Chinese weakness
Oil prices slipped lower Tuesday after private survey data showed further signs of weakness in the Chinese economy, the world’s largest importer of crude.
That said, both contracts remained near three-month highs on signs of tightening global supply, as major producers started implementing output cuts.
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