LONDON — European markets are set to pull back slightly on Tuesday, tracking risk-off sentiment globally as investors assess whether last month's rally has further to run.Britain's FTSE 100 is seen around 20 points lower at 7,393, Germany's DAX is set to slip by around 67 points to 13,413 and France's CAC 40 is expected to drop around 24 points to 6,413.The pan-European Stoxx 600 finished Monday's trading session fractionally lower to begin August, after closing out its best month since November 2020.Shares in Asia-Pacific retreated overnight, with mainland Chinese markets leading losses as geopolitical tensions rose over U.S. House Speaker Nancy Pelosi's possible visit to Taiwan.U.S. stock futures fell in early premarket trading after slipping lower to start the month, with not all investors convinced that the pain for risk assets is truly over.The dollar and U.S. long-term Treasury yields declined on concerns about Pelosi's Taiwan visit and weak data out of the United States, where data on Monday showed that manufacturing activity weakened in June, furthering fears of a global recession.Oil also retreated as manufacturing data showed weakness in several major economies.Earnings remain a key driver of individual share price movement. BP, Ferrari, Maersk and Uniper were among the major European companies reporting before the bell on Tuesday.The first Ukrainian ship — bound for Lebanon — to carry grain through the Black Sea since the Russian invasion left the port of Odesa on Monday under a safe passage deal, offering some hope in the face of a deepening global food crisis.Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.
European stocks set to retreat, tracking global risk-off sentiment.