- European stocks are expected to open in positive territory on Tuesday as investors await the start of the U.S. Federal Reserve's latest monetary policy meeting.
- London's FTSE is seen opening 13 points higher at 7,168, Germany's DAX 47 points higher at 15,740, France's CAC 40 up 17 points at 6,631 and Italy's FTSE MIB 34 points higher at 25,778, according to IG.
LONDON — European stocks are expected to open in positive territory on Tuesday as investors await the start of the U.S. Federal Reserve's latest monetary policy meeting.
London's FTSE is seen opening 13 points higher at 7,168, Germany's DAX 47 points higher at 15,740, France's CAC 40 up 17 points at 6,631 and Italy's FTSE MIB 34 points higher at 25,778, according to IG.
The positive start expected in Europe diverges from more mixed sentiment elsewhere overnight. Shares in Asia-Pacific were mixed in Tuesday afternoon trade, with Australian stocks leading gains regionally, while U.S. stock index futures are flat as investors await the Federal Reserve's two-day policy meeting which starts on Tuesday — a focal point for the markets this week.
The central bank is not expected to take any action however, commentary on interest rates, inflation and the economy could drive market moves and there will be close attention to comments on the Fed's eventual tapering plans.
Billionaire hedge fund manager Paul Tudor Jones told CNBC on Monday that this Fed meeting could be the most important in Chairman Jerome Powell's career. Jones also warned that Powell could spark a big sell-off in risk assets if he doesn't do a good job of signaling a taper.
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Investors will also be watching for another inflation gauge released on Tuesday, the Producer Price Index — which measures the prices paid to producers as opposed to prices on the consumer level — is expected to rise 0.5% in May, according to Dow Jones estimates. Data releases in Europe include U.K. unemployment figures for April, final inflation data for Germany, Italy and France in May and euro zone trade balance data for April. There are no major earnings releases. Enjoyed this article? – CNBC's Maggie Fitzgerald contributed reporting to this story. Source: Read Full Article
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