VIENNA (Alliance News) - European stocks are seen opening mixed on Tuesday, with stocks in the UK likely to rise as trading resumes following a public holiday Monday. The markets elsewhere may show lackluster movements, with hopes that the European Central Bank will take some sort of action at its next policy meeting likely to limit the downside.
ECB President Mario Draghi told a central banking forum in Sintra, Portugal, that the inability to get credit was hurting viable companies in countries such as Spain and Portugal and holding back regional growth. He warned of 'a negative spiral' between 'low inflation, falling inflation expectations and credit' facing by the Eurozone.
The US markets resume trading later in the day after the Memorial Day holiday weekend, with investors awaiting data on durable goods orders, house prices and consumer confidence along with two manufacturing surveys from the Richmond and Dallas Federal Reserve Banks for further cues on the US economic recovery.
Closer home, optimism among UK services companies rose at the fastest pace since records began in 1998, survey results from the Confederation of British Industry showed. However, the quarterly service sector survey revealed that firms are struggling to find skilled staff.
Investors eye consumer confidence data for France and Italy as well as speeches by notable European Central Bank officials later in the day for further direction.
The Asian markets are trading mostly lower, although Japanese shares hit fresh seven-week high, extending gains for the fourth straight day. With Thailand in the midst of a military coup and relations between communist neighbors Vietnam and China plummeting over territorial claims to the waters, investors preferred to sit on the sidelines.
Investors also keep a wary eye on Ukraine after the military launched airstrikes against the pro-Russian rebels who had seized an airport on Monday in eastern city of Donetsk.
In domestic corporate news, Spanish oil company Repsol SA said that it would pay an extraordinary dividend of one euro per share after Argentina paid the company more than USD6 billion in compensation for nationalizing YPF SA (YPF).
Aixtron SE announced that its CFO Wolfgang Breme will leave the firm as of May 31 by mutual agreement to pursue new career opportunities outside the company.
Gemalto NV, a Dutch provider of digital security services, said it has won a multi-year contract to supply next-generation ePassports to the Center for State Information Resources 'Registru' of the Republic of Moldova.
European stocks hit six-year highs on Monday and the euro edged higher, as investors shrugged off strong gains for anti-austerity parties in European Parliamentary elections, with analysts saying the elections will have no impact on the region's economic policies or on the euro's standing in currency markets.
More hints of easing next week from European Central Bank President Mario Draghi also buoyed investor sentiment. The German DAX rallied 1.8% and France's CAC 40 advanced 0.8%, while the UK and US markets were closed for public holidays.