European stocks anticipate a flat to positive start as markets focus on Fed and U.S. inflation data.
European stocks are predicted to remain unchanged or rise on Tuesday, as investors anticipate the Federal Reserve's upcoming meeting and the release of U.S. inflation data.
According to IG, the U.K.'s index is expected to remain unchanged at 8,223, while Germany's index is predicted to increase by 6 points to 18,493. France's index is expected to rise by 21 points to 7,897, and Italy's index is anticipated to increase by 16 points to 34,568.
On Monday, regional markets declined due to the EU Parliament elections and French President Emmanuel Macron's decision to call a snap election following the National Rally party's significant gains.
The U.S. Federal Reserve's latest rate decision and May's consumer price index, which will be released Wednesday, are now receiving market attention. The U.S. inflation data could be a key test for markets, especially after Friday's strong jobs report continued to suggest the central bank could hold off on lowering rates.
The Fed's updated projections on the timing and frequency of rate cuts will be closely monitored by investors. Currently, markets are pricing in only one rate cut this year, which is expected to occur in November, according to the CME FedWatch Tool.
Markets
You might also like
- Delinquencies are on the rise while a record number of consumers are making minimum credit card payments.
- U.S. economy state weighs on little changed treasury yields.
- European markets predicted to sustain positive growth.
- Trump hints at imposing a 10% tariff on China starting in February.
- David Einhorn believes we are currently in the "Fartcoin" phase of the market cycle.