Stocks To Open Lower After German Data & Poor China Data.

As investors process the most recent German inflation statistics in the aftermath of dismal Chinese trade data, European stock markets are anticipated to open lower on Tuesday.

With statistics released earlier on Tuesday indicating that consumer prices in Europe's largest economy grew 0.3% on the month in July, matching the amount from June, Germany kicked off the week's major inflation reports from across the world.

Indicating that prices are declining in the largest economy in the eurozone, the annual number dropped from 6.4% to 6.2% in the previous month. This might encourage the European Central Bank to halt its protracted tightening cycle at its next policy meeting in September.

Increased hopes that the U.S. economy would avoid recession this year and have a gentle landing as the Federal Reserve pauses its aggressive interest rate rises earlier than anticipated have given global markets a lift.

Additional evidence of a slowdown in U.S. inflation would support this thesis, as would remarks made later on Tuesday by officials like Richmond Fed President Barkin and Philadelphia Fed President Harker.

The second-largest economy in the world, however, is having difficulty, as evidenced most recently by Tuesday's dismal trade data.

Tuesday will see an in-depth analysis of the financial results from companies like Glencore and Bayer in Europe, but the banking industry is likely to draw attention after the Italian government announced a new tax on the "extra profits" of its banks this year and the Moody's credit agency downgraded the ratings of 10 small and midsize U.S. lenders.

The dismal Chinese trade data knocked on oil prices Tuesday, although losses remain minimal ahead of the most recent U.S. inventory data.

Although they were up 17% from a low base a year earlier, oil imports to China, the world's largest oil importer and second-largest consumer, decreased by 18.8% from imports in June.

Later in the day, the American Petroleum Institute will report its estimate of U.S. oil stocks, which is predicted to show yet another decline following a significant drop last week.

(Sources: investing.com, reuters.com)