European, global markets see mixed cues on economic data

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European, global markets see mixed cues on economic data

Anshuman Daga takes a look at the day ahead in European and global markets.

Just as U.S. economic data shows that the Fed could go higher for longer, global equities are also feeling the pain due to the fact that missile attacks in Ukraine fuel fears of emergency blackouts in Ukraine.

After its biggest rally in two weeks and risk-off sentiment is holding hold onto its hold, Treasury yields are up and the dollar is firm.

There is little in the way of good news for the euro zone. In November, business activity declined for a fifth month, indicating the economy was headed for a mild recession as consumers slashed spending due to rising inflation.

Industrial orders data from Germany, the biggest economy in the euro zone, is the only economic indicator worth watching on Tuesday.

The euro bloc's economy remains fragile, but economists still believe that the European Central Bank will add 50 basis points to its deposit rate next month as it attempts to fight runaway inflation.

Australia's central bank has raised interest rates to a 10 year high and stuck with its projection that more hikes are needed.

Consumer spending went up last month at a rate that was much lagged inflation, according to surveys on Tuesday that highlighted the pressure on household budgets ahead of Christmas.

Britain's Treasury is finalising plans for a package to regulate the industry, including limits on foreign companies selling into the country and restrictions on advertising, according to the Financial Times.

The campaign to shore up investor confidence on Credit Suisse goes on. Chairman Axel Lehmann told media that the bank is stable and has seen a stabilisation of client funds outflows.

This comes days after the bank reported sharp outflows as wealthy clients move assets elsewhere, while it focuses more on its flagship wealth management franchise and pruning its investment banking business.

Prince Harry said that Britain's royal household regularly leaks stories about each other, calling it a dirty game. Other developments that could influence markets on Tuesday: