European markets set for strong rebound after global retreat on Covid fears

  • European stocks are expected to open robustly higher on Tuesday, a day after global markets retreated on fears of a Covid-19 resurgence.
  • London's FTSE is seen opening 35 points higher at 6,874, Germany's DAX 110 points higher at 15,216, France's CAC 40 up 42 points at 6,328 and Italy's FTSE MIB up 92 points at 24,031, according to IG.

LONDON — European stocks are expected to open robustly higher on Tuesday, a day after global markets retreated on fears of a Covid-19 resurgence.

London's FTSE is seen opening 35 points higher at 6,874, Germany's DAX 110 points higher at 15,216, France's CAC 40 up 42 points at 6,328 and Italy's FTSE MIB up 92 points at 24,031, according to IG.

European markets are set to open sharply higher, reflecting a rebound in U.S. sentiment overnight with U.S. stock futures up in overnight trading.

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On Monday, concerns about the spread of Covid-19′s delta variant prompted investors around the world to dump equities, especially those directly affected by pandemic restrictions.

New Covid cases are surging in Europe and the U.S. as the delta variant spreads, largely among the young and unvaccinated, or the partially vaccinated. The U.S. is averaging about 26,000 daily cases in the last seven days, more than double the average from a month ago, according to CDC data. 

Bitcoin is also in the spotlight on Tuesday after its price tumbled amid the market turmoil, falling below $30,000 for the first time in nearly a month. About $98 billion was wiped off the entire cryptocurrency market in 24 hours as of 12:29 a.m. ET on Tuesday, according to CoinMarketCap data.

In earning news, Swiss banking giant UBS has beaten second-quarter earnings expectations, reporting net profit attributable to shareholders of $2 billion.

Other earnings updates on Tuesday come from Ubisoft, and Easyjet releases a third-quarter trading update. On the data front, euro zone current account data for May is due, as well as German producer prices for June.

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– CNBC's Yun Li and Arjun Kharpal contributed to this market report.

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