Investing.com - Australian shares are set to open with minimal changes on Tuesday as key commodities experienced a downturn due to concerns about China's economic outlook.
In Europe, the benchmark stock index reached a two-year high, bolstered by strong performance in the healthcare sector. The FTSE 100 index, a collection of blue-chip companies, rose 0.2% to a near seven-week high, and the mid-cap FTSE 250 index saw a slight increase of 0.1%. Meanwhile, France's benchmark index remained unchanged after the government reduced its 2024 GDP growth forecast from 1.4% to 1%.
US markets were closed for Presidents' Day, with futures showing mixed results - the S&P 500 and Nasdaq were modestly higher, while the Dow was slightly lower. According to Citi's Chris Montagu, last week's positioning activity in US equities was primarily driven by long and short covering balancing each other out, leaving the S&P and Nasdaq in a bullish state.
Iron ore prices declined more than 3% in Singapore, and copper was down in London, despite the People's Bank of China's decision to maintain steady rates against expectations of a cut. This decision came amid reports of falling new home prices during the Lunar New Year break.
Major iron ore companies BHP, Rio Tinto Ltd (ASX:RIO) and Fortescue Metals Group Ltd (ASX:FMG) are set to release their results this week, potentially providing more insight into the demand for iron ore.
However, concerns persist over China's outlook. TD Securities stated that while Chinese authorities have shown a willingness to relax monetary policy to combat deflation, with PBoC governor Pan indicating a potential openness to cut, the timing remains uncertain.
Companies scheduled to report on Tuesday include ARB Corporation Ltd (ASX:ARB), Baby Bunting Group Ltd (ASX:BBN), BHP Group Ltd (ASX:BHP), Boart Longyear Ltd (ASX:BLY), Centuria Capital Ltd (ASX:CNI), Coronado (ASX:CRN), HMC Capital Ltd (ASX:HMC), Hub24 Ltd (ASX:HUB), Ingenia (ASX:INA), Judo Bank (ASX:JDO), Megaport Ltd (ASX:MP1), Monadelphous Group Ltd (ASX:MND), Netwealth Group Ltd (ASX:NWL), SG Fleet Group Ltd (ASX:SGF), and Sims (ASX:SGM).
Investors are also closely monitoring the tech sector, with NVIDIA Corporation (NASDAQ:NVDA) set to report results on Thursday AEDT.