Visitors shelter from the rain with umbrellas on the Parvis des Droits de l'Homme on Esplanade du Tocadero across from the Eiffel Tower, as remnants of hurricane Kirk cause heavy rainfall over Paris, on October 9, 2024.
Ludovic Marin | Afp | Getty Images
LONDON — European stocks are seen opening in flat to lower territory on Tuesday as regional markets continue to struggle to find momentum in December.
The U.K.'s FTSE index is expected to open 0.12% lower, Germany's DAX flat, France's CAC 40 down 0.16% and Italy's FTSE MIB just below the flatline, according to data from IG.
Regional stocks traded lower on Monday, marking a gloomy start to the last trading month of the year in which investors are now expecting the U.S. Federal Reserve to cut interest rates when it meets on Dec. 9-10. Traders are pricing in an 87.2% chance of a quarter-point rate cut, according to the CME FedWatch Tool.
The Bank of England is also closely monitoring the Fed for any potential spillover effects, Megan Greene, who sits on the Monetary Policy Committee at the Bank of England, told CNBC Monday.
"About half the moves in our curve actually are generated entirely outside the U.K.," Greene told CNBC's Ritika Gupta on Monday.
The BOE has not committed to cutting rates in December but economists broadly expect the central bank to do so giving signs of cooling inflation, likely to be encouraged further by disinflationary measures in last week's Autumn Budget, as well as lackluster growth and a weakening labor market.
In corporate news, German biotech giant Bayer won support from the Trump administration on Monday to curb U.S. litigation related to its Roundup weedkiller.
The company faces thousands of lawsuits alleging the weedkiller has caused health issues including cancer and has already paid billions of dollars to claimants.
U.S. Solicitor General D. John Sauer urged the Supreme Court on Monday to limit the lawsuits brought against Bayer, supporting the firm's argument that federal law on pesticides preempts claims made under state law.
"The support of the U.S. Government is an important step and good news for U.S. farmers, who need regulatory clarity," Bayer CEO Bill Anderson said in a statement on Tuesday. "The stakes could not be higher as the misapplication of federal law jeopardizes the availability of innovative tools for farmers and investments in the broader U.S. economy."
Bayer acquired Roundup maker Monsanto for more than $60 billion in 2018.
U.S. stock futures were relatively flat Monday night after a weak start to December trading while Asia-Pacific markets traded mostly higher.
On Tuesday in Europe, there are no major earnings. Data releases include Spanish and Italian unemployment figures and EU inflation data.
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