Europe: Stocks bounce back at open

[LONDON] Europe's stock markets opened higher Tuesday in choppy trade on the eve of key US inflation data, as investors went bargain hunting after recent falls.

London's benchmark FTSE 100 index rose 0.6 per cent to 7,491.36 points compared with the closing level on Monday.

In the eurozone, Frankfurt's DAX index won almost 1.0 per cent to 15,921.68 points and the Paris CAC 40 added 1.1 per cent to 7,196.96.

"Some tentative buying activity ... as investors sought to benefit from the recent dips," said Richard Hunter, head of markets at Interactive Investor.

On the downside, most Asian indices retreated as investors grew increasingly concerned about the Federal Reserve's plans to wind back its financial support measures and lift interest rates within months in order to tackle surging inflation.

Markets are now cautiously awaiting the release of US inflation figures on Wednesday, which could play a major role in the Fed's thinking.

"Investors should keep in mind that stock markets are likely to be volatile over the next few days, mainly because of the inflation data scheduled to be released tomorrow," said AvaTrade analyst Naeem Aslam.

While the fast-spreading Omicron coronavirus variant plays on nerves, traders are now coming to terms with the imminent end to the pandemic era of ultra-cheap cash, which helped the economic recovery and fanned a global rally for nearly two years.

AFP