European stocks to rebound after the massive slump, Ifo eyed

FXStreet (Mumbai) – European indices are likely to stage a solid rebound at open on Tuesday after recording about a 5% plunge on Monday as markets would cheer the latest upbeat German Q2 GDP report which shows that the economy continues to grow in the second quarter. Markets now await German Ifo survey for fresh cues.

Germany’s economy added 0.4% during the second quarter of this year, following 0.3% expansion in the January-March period. Markets had expected confirmation of a 0.4% increase reported in the preliminary release.

Before the market open, futures for Germany’s DAX 30 index added 2.01% to 9,758.80, while futures for the UK FTSE 100 index advanced 1.48% to 5,955.30. Among the other indices, French CAC 40 futures gained 2.58% to 4,421.70, while futures for the pan-European Euro Stoxx 50 index increased 1.57% to 3,110.50.

However, the recovery is likely to remain short-lived as the European bourses may mimic the moves in its Asian counterparts as the stock rout in Asia extends with the Shanghai Composite index is still falling, down -6%, testing 3000 – key levels.

Among other Asian indices, the Japanese benchmark Nikkei 225 flipped in to losses and closed nearly -4% at 17806. While the benchmark Australian S&P/ASX 200 index stood resilient, gaining 2.70% at 5137.

European indices are likely to stage a solid rebound at open on Tuesday after recording about a 5% plunge on Monday as markets would cheer the latest upbeat German Q2 GDP report which shows that the economy continues to grow in the second quarter. Markets now await German Ifo survey for fresh cues.

(Market News Provided by FXstreet)