Investing.com - European stock markets declined after the open on Tuesday, as investors monitored movements on China's volatile stock market.
During European morning trade, the EURO STOXX 50 shed 16 points, or 0.46%, France’s CAC 40 edged down 23 points, or 0.43%, Germany’s DAX 30 lost 28 points, or 0.26%, while London's FTSE 100 dipped 16 points, or 0.25%.
The Shanghai Composite tumbled 6% in volatile trade on Tuesday, as losses accelerated towards the end of the session, despite fresh efforts by the government to calm the market.
China’s central bank injected the largest amount of cash into the financial system on a single-day basis in almost 19 months in an effort to offset outflows in the wake of a weaker yuan.
In the U.S., equity markets pointed to a moderately lower open as investors looked ahead to reports on the U.S housing sector later in the day for fresh cues ahead of Wednesday’s Federal Reserve minutes.
The Dow futures were down 46 points, or 0.26%, S&P 500 futures dropped 5 points, or 0.24%, while the Nasdaq 100 futures declined 15 points, or 0.33%.
Some traders believe the Fed could postpone raising interest rates as soon as September as officials are likely to remain concerned over global growth and inflation pressures due to China’s currency devaluation move and weak oil prices.
Data on Monday showed that manufacturing activity in the New York region slumped to its lowest level since November 2009 this month as new orders fell sharply.
This was offset by another report showing that U.S. house builder sentiment rose to its highest level in nearly a decade this month.