European equity markets were poised to open slightly lower on Tuesday, extending the previous session’s losses as rising global bond yields and higher oil prices intensified worries about persistent inflation and the likelihood of imminent interest rate increases. The yield on the Euro area 10-year government bond rose to around 3.64%, its highest level since April 2011, amid expectations that the European Central Bank will implement a 25 basis point rate hike at its September 9–10 policy meeting.
Investors will be watching key data releases, including inflation figures for the Eurozone and Italy, German retail sales, UK housing prices, and manufacturing PMI reports from across the region. No major corporate earnings releases are scheduled in Europe for Tuesday. In premarket trading, futures on both the Euro Stoxx 50 and the Stoxx 600 were down roughly 0.1%.