European markets to open higher as investors keep an eye on the ongoing outbreak in China. As well as the most recent inflation from Spain and Germany.

As investors keep an eye on the ongoing COVID outbreak in China as well as the most recent inflation data from Germany and Spain, European stock markets are anticipated to start the day higher.

China announced its first decrease in daily infections on Monday in more than a week. Chinese officials are expected to reveal something later this session, according to local media reports, which led to rumours that the Chinese government was thinking about easing up on its anti-COVID regulations.

In response to the harsh COVID-related limitations, there were numerous protests throughout the weekend.

With German and Spanish consumer prices planned out later in the afternoon and the preliminary reading of Eurozone inflation for November due out on Wednesday, investors in Europe will be focusing on inflation.

Inflation in the Eurozone is predicted to be 10.4% in November, a slight decrease from the 10.6% in October. However, considering that this would still be higher than five times the ECB's 2% target, the ECB is unlikely to cease raising interest rates.

ECB President Christine Lagarde hinted at future interest rate increases on Monday by stating that the region's inflation has not peaked and that it could end up even higher than anticipated.

In business news, Nestle updated its 2022 sales outlook upward, predicting that its organic sales for October would increase by about 8%. Additionally, EasyJet's financial earnings are expected in today’s session.

Early on Tuesday, crude oil prices increased on expectations that OPEC+ could decide to reduce production when it meets next week as a result of the recent weakening.

Since there had been an increase in COVID-19 cases in China, the world's largest crude importer, there have been tight mobility restrictions reinstated, which has decreased economic activity and reduced demand for crude.

(Sources: investing.com, reuters.com)