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This is CNBC’s live blog covering European markets.
European markets are heading for a lower open Tuesday as investors are closely following developments in the Middle East.
Geopolitical tensions are high following Iran’s extensive drone and missile attack on Israel Saturday night. Israel has vowed to retaliate but has signaled that it could bide its time. Allies have called for cool heads, warning that a much bigger war in the Middle East could be easily triggered.
Asia-Pacific markets sold off as the world awaits Israel’s response to Iran’s air assault over the weekend. Most major markets in Asia lost about 2%. Data released Tuesday showed China’s economy grew 5.3% in the first quarter from a year ago, more than the 4.6% growth expected by economists polled by Reuters.
U.S. stock futures were little changed Monday night after a losing day for the major benchmarks.
Nasdaq Composite slides below its 50-day moving average, a first since November
The major indexes resumed their sell-off on Monday, and the Nasdaq Composite slipped below its 50-day moving average as the index dropped about 1.7%.
It was the first time the tech-heavy index slid below this key threshold since Nov. 3, 2023. If it closes below that level, it will be a first since Nov. 2, 2023. The index is up more than 30% in the past 12 months.
The 50-day moving average is a technical indicator that traders watch to assess short-term trading trends. A close below this level could signal an upcoming downtrend for an asset.
— Darla Mercado, Nick Wells
CNBC Pro: These 10 oil stocks are the most — and least — sensitive to price swings amid Iran-Israel tensions
Crude oil prices have been volatile in April amid heightened geopolitical risks.
CNBC Pro screened for stocks in the MSCI World Energy Index that are both highly correlated and inversely correlated with international benchmark Brent crude oil prices over the past week, month, and year.
CNBC Pro subscribers can read more here.
— Ganesh Rao
The oil market shrugged Iran’s attack. What happens next depends on Israel
An Israeli Sikorsky helicopter is flying near Ashkelon as an Oil Rig is seen at the background, amid the ongoing conflict between Israel and Palestinian Islamist group Hamas, in Israel, November 14, 2023.
The oil market on Monday shrugged off Iran’s weekend air assault against Israel with U.S. crude and the global benchmark both settling slightly lower.
The West Texas Intermediate contract for May lost 25 cents, or 0.29%, to settle at $85.41 a barrel. June Brent futures fell 35 cents, or 0.39%, to settle at $90.10 a barrel.
The market had already priced in the risk from an attack Iran had telegraphed for days beforehand, and traders breathed a sigh of relief after Israel and the U.S. intercepted nearly all the missiles fired.
What happens next depends on how Israel decides to respond.
“What is not priced into the current market, in our view, is a potential continuation of a direct conflict between Iran and Israel,” Maximilian Layton, head of commodities research at Citi, told clients in a note. Oil prices could spike above $100 a barrel depending on how Israel responds to the attack, the analyst wrote.
— Spencer Kimball
CNBC Pro: Morgan Stanley names global ‘alpha’ stock ideas for April — and gives one over 30% upside
Asian markets have had a mixed start to the year — with investors looking keenly at India, Japan and increasingly China.
Looking ahead, those searching for pockets of opportunities in the region can look to Morgan Stanley’s selection of “alpha” stocks. Alpha stocks refer to those with the ability to beat the market.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
European markets: Here are the opening calls
European markets are set to open lower Tuesday.
The U.K.’s FTSE 100 index is expected to open 87 points lower at 7,888, Germany’s DAX down 214 points at 17,784, France’s CAC 96 points lower at 7,938 and Italy’s FTSE MIB down 422 points at 32,870, according to data from IG.
Earnings are set to come from Ericsson and LVMH. Germany’s ZEW survey of economic sentiment will be released.
— Holly Ellyatt
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