European markets head for another negative open as investors await inflation data

LONDON — European stocks are expected to open lower on Tuesday as investors gear up for the latest U.S. inflation reading on Wednesday.

The U.K.’s FTSE index is seen opening 29 points lower at 7,167, Germany’s DAX 86 points lower at 12,746 and France’s CAC 40 down 32 points at 5,964, according to data from IG.

The lower open for European stocks comes after a gloomy trading session at the start of the week, with markets closing lower Monday as investors prepare for more key inflation data out of the U.S. this week.

The June consumer price index is expected to show headline inflation, including food and energy, rising above May’s 8.6% level.

Market participants have been reflecting on a stronger-than-expected jobs report out of the U.S. last Friday which showed that the economic downturn worrying investors has not yet arrived.

The jobs report, while good for the economy, could embolden the Federal Reserve to continue its aggressive rate hikes in the coming months to fight persistently high inflation. It will be tested with a slew of U.S. earnings from major banks and the latest consumer inflation reading coming up this week.

There are no major earnings releases in Europe on Tuesday. Data releases include the ZEW economic sentiment index for July from Germany.