Dhara Ranasinghe shows us the market day ahead.

A $44 Billion cash deal between Elon Musk and Twitter to buy them (NYSE:) set off a firestorm in tech stocks. The deal also halted a selloff which had been threatened.

Asian stocks rose following Wall Street and European shares have been forecast to rise by over 1%.

The market’s attention was still drawn to Monday’s headwinds, which will keep them awake and continue to challenge the recovery.

Let’s get started with Russia. On Tuesday, Sergei Lavrov, Russia’s foreign minister, warned that nuclear conflict poses significant risks to the entire world.

Then there were central banks. Martins Kazaks of the European Central Bank joined a chorus calling for a rapid exit from stimulus. This suggested that the ECB need to raise rates immediately and have room for as many as three increases this year.

Finally, China. China. Three quarters of Beijing’s 22million inhabitants lined up Tuesday to take COVID-19 test, as officials in Beijing raced for an end to the outbreak.

Concerns for China’s second largest economy are being raised by fears of a city-wide lockdown, which has engulfed Shanghai for over a month. There is no question that any slowdown will spread more widely.

These worries have pushed the yuan 3.5% lower in this month’s trading session. A promise by the central bank on Monday to reduce foreign exchange reserves that banks must keep at bay, provided a marginal relief.

Earnings will rule the next session. HSBC was the most prominent bank in Europe, with a 27% profit decline during Q1, which contrasts with UBS’ resilience and Santander’s (BME):

There are key developments which should give more direction to the markets Tuesday

Japan has the lowest jobless rate in 2 years

Public borrowing in the UK is higher than govt projections for 2021/22 year

Hungary’s Central Bank is likely to increase rates

US Consumer Confidence April/New Home Sales

– US Two-year note auction

– European earnings:  Thule, SKF

Earnings in the USA: UPS, 3M General Electric (NYSE:), JetBluel, Northern Trust (NASDAQ:),  Alphabet (NASDAQ:), Capital One, Chipotle (NYSE:), General Motors (NYSE:), Microsoft (NASDAQ:), Mondelez (NASDAQ:), Visa (NYSE:), Texas Instruments (NASDAQ:),