NEW YORK, Aug. 25 (UPI) — Wall Street stocks are expected to increase on Tuesday, following a rise in European stocks and decline in the Asian financial markets.
Dow, Nasdaq and S&P 500 stock index futures increased by 3 percent before the opening on Tuesday. France’s CAC 40 index rose by 3.5 percent and Germany’s DAX rose by 3.1 percent, according to USA Today.
In the Asian financial markets, China and Japan stocks decreased. China’s Shanghai composite index declined by 7.6 percent and its Shenzhen composite index decreased by more than 7 percent.
Japan’s Nikkei 225 index fell nearly 4 percent after earlier falling by 4.6 percent.
On Monday, after a day of sharp drops and comebacks, the Dow Jones Industrial Average closed down 588 points for its worst decline since 2011.
The benchmark index fell nearly 1,100 points shortly after the opening bell Monday, only to quickly right itself to a loss of 603 points at 15,858. That number rose slightly by the closing bell to 15,871 for a loss of 3.6 percent.
The drop followed declines Thursday and Friday caused by uncertainty over China’s markets after a devaluation of the Chinese currency.
Between last week and Monday, the Dow Jones Industrial Average suffered its worst decline in four years.
“Investors are overreacting about economic risks in China,” Capital Economics said in a research note Tuesday. “A combination of poor data and policy inaction in China may have triggered today’s market falls but the bigger picture is that we are witnessing the inevitable implosion of an equity market bubble.”
Ed Adamczyk and Danielle Haynes contributed to this report.
