FX.co ★ European Stocks Set for Lower Open

European equity markets were poised to open lower on Tuesday, extending their pullback from record highs as global bond yields climbed on growing fiscal and inflation concerns in major economies. The Eurozone 10-year sovereign yield rose above 3.2%, its highest level in 15 years, while benchmark 10-year yields in Germany and France also hit multi-year peaks. The move coincided with further gains in oil prices, driven by diminishing hopes for a diplomatic breakthrough in the Middle East conflict and for the reopening of the Strait of Hormuz. Investors will also be watching UK labour market data and the Eurozone and German ZEW Economic Sentiment surveys for fresh insight into the region’s economic outlook. There are no significant corporate earnings reports scheduled in Europe for Tuesday. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were down 0.6% and 0.4%, respectively.