European stocks head for flat open as markets await Fed decision
LONDON — While global markets await the US Federal Reserve’s interest rate decision, European stock markets are expected to open with a horizontal rise on Tuesday.
of england FTSE It seems that the German index has opened slightly upwards DAX and France CAC 40 0.2% decrease and Italy’s FTSE MIB Just below the flat line, according to IG’s data.
The biggest event for investors this week is the Fed’s two-day meeting, which starts on Tuesday. The market is currently pricing in a 96% chance that the US central bank will announce a 25 basis point interest rate cut this week. CME Fedwatch tool.
Investors are also hoping to get a signal from Fed Chairman Jerome Powell on Wednesday that the central bank will cut interest rates once again at its final meeting of the year in December amid concerns about a weakening labor market.
As the Fed grapples with an economic data outage given the ongoing U.S. government shutdown, last week’s inflation report is one of the few data to be released soon.
Geopolitics and trade are also at the forefront of investors’ minds this week amid hopes the U.S. and China can resolve their escalating trade dispute. President Donald Trump and Chinese President Xi Jinping will meet in South Korea on Thursday in an effort to ease trade tensions.
Both sides appear to be in a conciliatory mood, having agreed on a framework for a potential trade deal that addresses China’s rare earth export restrictions, soybean purchases and TikTok.
“I have great respect for President Xi, and we will abandon the deal,” Trump said Monday. Leaders will meet on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit.
Tuesday’s earnings reports in Europe include: Novartis, BNP Paribas, Capgemini, Air Fluid, iberdrola, ASM International And Logitech. Data releases include new car registrations in the EU and German consumer confidence figures.
Early Tuesday earnings from Europe’s largest lender HSBC Third-quarter profit beat expectations.
— CNBC’s Pia Singh contributed to this market report.
