European stock markets begin with mixed openings as market uncertainty persists.

European stock markets begin with mixed openings as market uncertainty persists.
European stock markets begin with mixed openings as market uncertainty persists.

European stocks are predicted to open in a mixed state on Tuesday, with market uncertainty continuing to affect the prospects of interest rate reductions.

According to IG's data, the U.K.'s index is predicted to open 28 points lower at 8,334, while Germany's flat is expected to be at 18,426. France's index is forecasted to be down 6 points at 7,499, and Italy's index is predicted to be up 6 points at 33,368.

This week, key Federal Reserve events will be the focus of global markets, with the release of minutes from the central bank's most recent meeting on Wednesday and Fed Chair Jerome Powell's speech in Jackson Hole, Wyoming, on Friday.

The Fed's next meeting and the upcoming events could provide investors with more clarity on the likelihood of interest rate cuts and the expected outcome. According to the CME FedWatch Tool, there is a roughly 76% chance that the central bank policymakers will lower rates by 25 basis points in September.

On Tuesday, Asia-Pacific markets rose, mirroring the gains on Wall Street the previous day, while investors also evaluated the minutes of the Reserve Bank of Australia's recent meeting. Meanwhile, U.S. stock futures remained unchanged following the S&P 500 and Nasdaq Composite's impressive 24-day winning streaks.

On Tuesday, Europe will release data such as Germany's producer price index, Sweden's latest monetary policy decision, and the EU's final year-on-year inflation rate.

by Holly Ellyatt

Markets