European stocks are seen opening higher on Tuesday, a day after the stock market turmoil in China caused ripple effects across global equity and commodity markets. Chinese shares wavered between gains and losses today as authorities scrambled once again to stave off a full-blown market collapse.
The People's Bank of China said on Tuesday it would inject 50 billion yuan ($8.05 billion) into the money markets via open-market operations in its biggest liquidity injection since July 7. The central bank also hinted at further monetary easing using "various monetary tools" to help ease fears about the impact of stock market volatility on the broader economy.
The Shanghai Securities News advised investors in a front page editorial that that they should view the latest market crash "logically" and know that China's economic fundamentals are still sound.
After plunging more than 8 percent on Monday, China's Shanghai Composite index is currently down nearly 3 percent in volatile trading. A tentative calm returned to markets elsewhere across the Asia-Pacific region, with the benchmark indexes in India, Malaysia, Japan, South Korea, Taiwan and Hong Kong rising between 0.1 percent and 1.1 percent.
The focus also remains on the two-day policy meeting of the U.S. Federal Reserve meeting that gets underway later tonight. While economists do not expect an immediate rate hike, investors are hoping that the language of the policy statement could provide further clues about how close officials believe they are getting to raise rates.
In economic releases, U.K. GDP and services sector data as well as U.S. reports on home prices and consumer confidence are slated for release later in the day.
Oil prices fell toward four-month lows to extend declines for a fifth consecutive session as traders fretted over a persistent supply glut. Gold prices hover near 5-1/2-year low despite some fresh selling of the American currency in international markets.
In domestic corporate news, German stock exchange operator Deutsche Börse reported that its second-quarter net income rose to 175.1 million euros from 159.3 million euros in the year-ago period.
Drug delivery devices maker Gerresheimer AG said it has reached an agreement with Nemera Development S.A. to acquire 100 percent of the share capital of Centor US Holding Inc.
French luxury goods company Kering SA reported net income Group share of 423 million euros in the first six months of 2015, up from 185 million euros for the same period of 2014.
Pharmaceutical firm Sanofi has entered into a new global collaboration with Regeneron Pharmaceuticals Inc. to discover, develop and commercialize new antibody cancer treatments in the emerging field of immuno-oncology.
The European markets fell sharply on Monday in reaction to the biggest one-day plunge in Chinese equities in more than eight years. The German DAX and France's CAC 40 index both fell about 2.6 percent, while the U.K.'s FTSE 100 index declined 1.1 percent.
U.S. stocks fell for the fifth straight session on Monday as the sharp slide in Chinese markets roiled markets worldwide. Lukewarm earnings and continued selloff in commodities on mounting worries about China's economy also weighed on investor sentiment, offsetting positive data on news orders for durable goods. The Dow dropped 0.7 percent to end near a six-month low, while the tech-heavy Nasdaq fell 1 percent and the S&P 500 shed 0.6 percent.
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