European stocks to pose modest recovery at open, Shanghai drops over 1.5%

FXStreet (Mumbai) – With returning risk sentiment in the markets, European stocks are expected to correct higher at open after witnessing steep losses during the past week.

Markets may also digest the rebounding German industrial output figures, which is the only data to be reported in an otherwise calm European session ahead. Germany’s industrial production showed gains of 0.7% and 0.5% for July on a monthly and annual basis, respectively.

China finally back in the negative territory

Meanwhile, stock markets in China reopened on a stronger footing on Monday after a prolonged weekend. However, all the gains are wiped and the Shanghai Composite index now trades over 1.50% lower at 3108 following the reports that Chinese authorities have revised down its country’s economic growth rate for last year to 7.3% from the previously released figure of 7.4%.

Ahead of Europe open, futures for Germany’s DAX 30 index added 0.72% to 10,126.30, while futures for the UK FTSE 100 index advanced 0.44% to 6,075.00. Among the other indices, French CAC 40 futures gained 0.88% to 4,564.00, while futures for the pan-European Euro Stoxx 50 index increased 0.72% to 3,208.00.

With returning risk sentiment in the markets, European stocks are expected to correct higher after witnessing steep losses during the past week.

(Market News Provided by FXstreet)