European futures point to second day of losses

European shares look likely to fall for a second day on Tuesday, as investors grow uneasy about a rapid surge in long-term bond yields and continued dollar strength as they ponder the interest rate outlook in the United States.

Fed Governor Michelle Bowman said on Monday she was willing to support another rate hike if upcoming data shows progress on inflation is stalling or proceeding too slowly.

EuroSTOXX50 and FTSE futures fell 0.5% and 0.2%, while S&P contracts eased 0.1% following a flat day on Monday, when gains across tech offset a big drop in rate-sensitive utilities.

European corporate news was quiet as companies prepare for the fourth quarter earnings season.

Among the stocks to watch, Boohoo could come under heavy pressure after the British online fashion retailer warned a slower-than-expected recovery in sales would see revenue for the year fall by 12%-17%. Peers like Zalando could also take a hit.

UK baker Greggs instead kept its FY outlook as underlying sales rose in the third quarter and it won market share, while on a more upbeat note, Swiss construction chemicals maker Sika nudged up its sales growth target to 6-9% per year.

Finally, Thyssenkrupp was also one to watch. Its top shareholder expects involved stakeholders to soon decide on the future of the German conglomerate’s steel division, its head told a German newspaper.