European stock exchanges should hesitate after the fall in key PBOC rates. The Eurostoxx 50 opens at 4,362.38 points (-0.74%), the CAC 40 at 7,314.05 points (-1.01%), the DAX 40 at 16,201.20 points (-0.96%), the FTSE 100 at 7,588.48 points (-0.71%), the SMI at 11,306.64 points (-0.70%), the AEX at 768.98 points (-0.71%), the SMI at 11,306.64 points (-0.70%), the AEX at 768.98 points (-0.48%), the BEL 20 at 3,596.72 points (-1.69%), the IBEX 35 at 9,431.90 points (-0.66%), the DJIA at 34,299.12 points (-0.32%), the Nasdaq at 13,689.57 points (-0.68%), the S&P 500 at 4,409.59 points (-0.37% (closed June 16)) and the Nikkei 25 to 33,315.95 points (-0.16% (class

On the exchange side, the change from the close in New York indicates that EUR/USD opens at 1.0914 (-0.10%), EUR/JPY at 154.92 (-0.12%), and USD/JPY at 141.95 (-0.03%).

Renault announced on Monday evening that its board of directors had appointed Luca de Meo as CEO of Ampere, the automaker's future subsidiary dedicated to electric vehicles and software. The Renault Board of Directors has also formed an ad hoc committee, responsible for monitoring Ampere's initial public offering project. This committee is led by Jean-Dominique Senard, Chairman of the Board of Directors of Renault. Virbac is also bringing its shareholders together at a general meeting on Tuesday

On the macroeconomic front, the Banque de France publishes its updated forecasts for the period 2023-2025.

European stock markets are expected to open little on Tuesday, with investors pausing after Wall Street closed for a holiday on Monday and the decision of the People's Bank of China (PBOC) to lower key interest rates. Around 7:30am, the CAC 40 futures contract lost 11 points, or 0.2%, according to data from the IG broker. The DAX 40 contract fell 22 points, or 0.1%, and the FTSE 100 contract fell 6.7 points, or 0.1%

The People's Bank of China (PBOC) cut key interest rates by 10 basis points on Tuesday to support a shaky economic recovery in the country. The Chinese central bank reduced the one-year Loan Prime Rate (LPR) to 3.55% from 3.65% previously, and the five-year Loan Prime Rate, the benchmark rate for mortgage loans, to 4.2% from 4.3%, it said in a statement. This is the first drop in PBOC rates since August 2022

LPRs are based on the interest rates that 18 designated commercial banks charge to their best customers and are calculated every month, once the proposed rates have been submitted to the central bank. Most loans in China are based on the one-year LPR, while the five-year rate is used as a benchmark for the cost of mortgages. Investors were waiting for the PBOC's decision, as the institution lowered the rate on its one-year medium-term loan facility (MLF) and the rate on seven-day reverse repo operations during liquidity injections carried out last week.

After this decision, Asian stock markets declined on Tuesday. The Chinese Shanghai Composite Index lost 0.3% at the end of the session. In Hong Kong, the Hang Seng dropped 1.5%, while in Tokyo, the Nikkei index fell

The 10-year returns of the German Bund, which ended Monday at 2.519%, are expected to fall to the bottom of the 2% to 2.5% range over the next few months, according to Morgan Stanley rate strategists. At levels of 2.35%-2.4%, strategists would consider increasing their bullish positions through options on the Bund, they say, noting that the drop in yields was more pronounced than expected due to the knock-on effect caused by the fall in gilts and the 50 basis point revision of Fed members' rate

Morgan Stanley's rate strategists expect the 10-year Bund to rebound and its return, which is about 25 basis points lower than their long-term fair value model for June, due to deteriorating economic indicators. The US bond market remained closed on Monday.

The euro fell slightly against the dollar on Tuesday, due to risk-aversion. Markets are not very lively the day after a holiday in the United States. They will likely be watching PMI numbers around the world over the next few sessions, MUFG says

Oil futures fell on Tuesday morning as investors assess the impact that measures to support the economy in China could have on oil demand. Around 7:25am, the August contract on Brent lost 26 cents to $75.83 per barrel, and the July contract on light sweet crude (WTI) listed on Nymex lost 90 cents, at $71.03 per barrel.