Tuesday's session is set to see European stock markets open slightly lower as a spike in COVID cases in China dampened growth forecasts.

Tuesday's session is set to see European stock markets open slightly lower as a spike in COVID cases in China dampened growth forecasts for the second-largest economy in the world.

Around 7:00 GMT, Germany's DAX futures contract traded 0.3% lower, France's CAC 40 futures dipped 0.1%, and the UK's FTSE 100 futures contract declined 0.1%.

A fresh COVID outbreak in several Chinese cities is causing problems, and over the weekend, the country experienced its first COVID-related fatality in in six months.

This has raised worries that extensive movement restrictions may return to the nation, affecting economic activity in the key region's and a significant export market for European businesses.

The European Central Bank may continue to raise interest rates as a result of the Eurozone's inflation surging beyond 10% at the end of last month, up from 9.9% in September, which will restrain regional economic growth.

Later on Tuesday, the Organisation for Economic Cooperation and Development will release its most recent economic forecast. In September, the Paris-based policy forum expressed particular pessimism about the prognosis for Europe, and it is difficult to imagine how things could have changed for the better since then.

After Chancellor Jeremy Hunt last week promised tax increases and spending cuts to balance the country's books, the U.K. unexpectedly reported smaller-than-expected public sector net borrowing for October.

Tuesday early morning saw a little increase in oil prices as they stabilised following steep drops due to demand concerns. China's COVID cases increase and concerns about the global recession grow. Attention now shifts to the next conference of the top producers to decide on output levels.

As traders got ready for the Organization of the Petroleum Exporting Countries and its Allies conference next month, the oil market experienced some turbulence on Monday. OPEC+ reduced its expected output levels by 2 million barrels per day in October. 

Key events:

- Canadian Core Retail Sales (MoM) (Sep) at 13:30 GMT.

- FOMC members speak: Mester, Bullard, George.

- API Weekly Crude Oil Stock at 21:30 GMT.

(Sources: investing.com, reuters.com, proactiveinvestorsuk.co.uk)