As concerns about the state of the world economy weighed on confidence, European stock markets are anticipated to begin Tuesday with modest losses.

As concerns about the state of the world economy weighed on confidence, European stock markets are anticipated to begin Tuesday with modest losses.

Tuesday saw a decline in confidence due to the publication of dismal Chinese statistics that showed the post-COVID economic recovery of the nation was slowing down.

China is a significant export market for large corporations in Europe, but statistics released on Tuesday revealed that the country's industrial production expanded less than anticipated in April and retail sales increased slower than projected.

On Monday, the European Commission revised its projection for this year's GDP upward, from 0.8% to 1% growth.

However, the commission also increased its predictions for inflation in the euro region, to 5.8% this year and 2.8% in 2024, since it anticipates that the ECB would keep raising interest rates, thereby raising concerns about economic growth.

Additionally, according to data, the unemployment rate in the United Kingdom increased slightly in March to reach 3.9%. Investors will also look to the German ZEW economic confidence index for May to gain an understanding of how the biggest country in the eurozone is doing economically.

Additionally, companies including Vodafone, Greggs, Boohoo, and Home Depot in the US are expected to report earnings today.

The U.S.'s efforts to replenish its severely depleted strategic reserve drove up oil prices on Tuesday, overpowering the disappointing Chinese economic figures.

For delivery in August, the U.S. Department of Energy said on Monday that it will purchase 3 million barrels of crude oil for the Strategic Petroleum Reserve. Offers must be made by May 31st.

(investing.com, reuters.com)