European stocks are likely to open higher on Tuesday as investor focus shifted to the U.S. Federal Reserve’s policy meeting due this week.

Asian stocks were mostly higher, though Chinese and Hong Kong markets fell as traders returned from a long weekend to play catch-up with global markets.

Gold extended losses for a third day as the dollar firmed up on fears of a hawkish surprise from the Fed, heading into Wednesday’s meeting statement.

Traders will pay close attention to any changes to the Fed’s comments about inflation, with previous statements largely attributing rising inflation to “transitory factors.”

Any changes to the Fed’s projections for economic growth, inflation and interest rates will have a significant impact on the outlook for monetary policy.

Crude oil edged back above $71 a barrel as nuclear talks dragged on. Bitcoin has once again surpassed $40,000 to reach its highest level in more than two weeks after billionaire hedge fund manager Paul Tudor Jones said he liked the digital currency.

Unemployment data from the U.K. and revised consumer price data from Germany are due later in the session, headlining a light day for the European economic news.

Across the Atlantic, reports on producer price inflation, retail sales and industrial production may sway sentiment.

U.S. stocks ended mixed overnight, as investors refrained from making big bets amid a lack of major catalysts and ahead of this week’s Federal Reserve meeting.

The Dow dipped 0.3 percent, while the S&P 500 edged up 0.2 percent and the tech-heavy Nasdaq Composite climbed 0.7 percent to reach new record closing highs.

European stocks closed broadly higher on Monday, even as the U.K. delayed plans to lift coronavirus lockdown restrictions by a month due to a surge of the Delta variant of COVID-19.

The pan European Stoxx 600 gained 0.2 percent. The German DAX slipped 0.1 percent while France’s CAC 40 index and the U.K.’s FTSE 100 both rose about 0.2 percent.

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