European markets begin September trading with a positive outlook, despite a sluggish start.

European markets begin September trading with a positive outlook, despite a sluggish start.
European markets begin September trading with a positive outlook, despite a sluggish start.

European stocks are predicted to begin Tuesday's trading session in a positive position, recovering from a sluggish beginning to September's market activity.

According to IG's data, the U.K.'s index is predicted to open 16 points higher at 8,372, Germany's index is expected to rise 28 points to 18,949, France's index is anticipated to increase by 7 points to 7,649, and Italy's index is forecasted to be 20 points higher at 34,395.

On Monday, regional markets declined as the first trading day in September commenced, and investors evaluated the prospects for interest rates and markets.

The U.S. Federal Reserve is expected to start interest rate cuts during its next meeting on Sept. 17-18.

The U.S. stock markets remained closed on Monday for the Labor Day holiday, but futures remained relatively stable as traders prepared for a potentially challenging month ahead following a volatile August. On Friday, investors will receive their first significant economic report of the month with the release of the U.S. government's August jobs report.

Overnight, Asia-Pacific markets generally rose as investors evaluated South Korea's August inflation figures, which decreased to their lowest year-on-year rate since March 2021.

The latest Spanish unemployment figures and U.K. retail sales data will be released in Europe on Tuesday.

by Holly Ellyatt

Markets