Futures on major European indices point to a higher opening on Tuesday as better-than-estimated U.S. new home sales enhanced prospects for global economic growth.
Sales of new U.S. single-family homes rebounded strongly in June from the prior month's record low. New home sales for June increased to an annual rate of 330,000, which exceeded economists' expectations and improved significantly from May's revised figure of 267,000, which was the lowest sales figure on record.
Futures on the DJSTOXX 50 are up 0.77 percent, futures on the Germany's DAX are up 0.32 percent, futures on the U.K.'s FTSE 100 are up 0.56 percent and France’s CAC 40 futures are up 0.85 percent.
Investors are cautious ahead of economic data including Gfk German Consumer Climate, monthly German Import Price Index, Eurozone Private Loans for June and Eurozone M3 for June which are due to release today.
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ARM Holdings and BP Plc. will release second quarter results during the day. Analysts at Barclays said BP could report a loss of $13 billion for the second quarter as it makes provisions of up to $25 billion for the cost of the spill. Those figures would far exceed an expected 77 percent jump in underlying profit.
The euro advanced 0.11 percent to 1.3008 against the dollar and gained 0.23 percent to 113.153 against the yen.
Crude oil futures declined 0.10 percent and copper futures advanced 0.03 percent. In precious metal sector, gold futures gained 0.17 percent and silver futures declined 0.08 percent.
Asian stock markets pared early gains as investors cautious about a rebound in U.S. new home sales amid lingering worries over the strength of the global economic recovery. Markets are currently trading in tight range with Japanese Nikkei trading down by 4.37 points, Hong Kong’s Hang Seng trading down by 6.39 points and Chinese Shanghai trading down by 8.75 points
On Monday, European markets ended higher as the vast majority of European banks passed their stress test and US home sales rose more than forecast. Banking shares rallied, led by Allied Irish Banks Plc. and Dexia SA which rose more than 5 percent and BP Plc. advanced 4.6 percent as Investors cheered BP CEO Hayward's expected departure.
