European shares seen lower, U.S. equity futures drop

The pan European Stoxx 600 edged up by 0.1 percent, the U.K.’s FTSE 100 advanced 0.3 percent, France’s CAC 40 finished slightly higher, while the German DAX declined half a percent

European stocks are seen opening on a sluggish note Tuesday, with geopolitics and upcoming U.S. economic readings likely to be in the spotlight.

The pan European Stoxx 600 edged up by 0.1 percent. The U.K.’s FTSE 100 advanced 0.3 percent and France’s CAC 40 finished slightly higher while the German DAX declined half a percent.

Asian markets treaded cautiously, with mainland China, Hong Kong, Singapore, Taiwan and South Korea closed for the Lunar New Year holidays.

U.S. equity futures edged lower amid heightened geopolitical risks and lingering worries about AI disruption hitting more and more sectors.

In economic news, ADP employment numbers and NY Empire State Manufacturing Index could give new insights into the U.S. economy ahead of this week’s fourth-quarter GDP numbers.

The minutes from the U.S. central bank’s January meeting on Wednesday will also provide a new read on that country’s economy.

Beyond the data, traders are likely to monitor speeches from Fed Governor Michael Barr and San Francisco Fed President Mary Daly for additional clues on the central bank’s policy stance.

According to the CME FedWatch Tool, the chances of a central bank rate cut in March and June now stand at 9.8 percent and 69.4 percent, respectively.

Gold dropped nearly 2 percent below $4,900 an ounce as the dollar held gains in thin trading. Oil prices were moving down before a second round of negotiations between the U.S. and Iran.

Overnight, U.S. markets were closed for Presidents’ Day. In Europe, markets closed mostly higher, with geopolitics and defence returning to the spotlight as investors focused on the annual Munich Security Conference.