LONDON – European stocks are expected to open in positive territory on Tuesday as investors wait for the start of the US Federal Reserve’s latest monetary policy meeting.
London’s FTSE would open 13 more points to 7,168, the German DAX 47 more points to 15,740, the French CAC 40 17 points to 6,631 and the Italian FTSE MIB 34 points more to 25,778, according to IG.
The expected positive start in Europe deviates from more mixed sentiment elsewhere overnight. Asia-Pacific stocks were mixed in Tuesday afternoon trading, with Australian stocks leading regional gains, while US stock index futures are flat as investors wait for the policy meeting of two days from the Federal Reserve that begins Tuesday – a focal point for the markets this week.
The central bank is not expected to take any action, however, comments on interest rates, inflation and the economy could lead to market movements and particular attention will be paid to comments on possible debt reduction plans. from the Fed.
Billionaire hedge fund manager Paul Tudor Jones told CNBC on Monday that the Fed meeting could be the most important in President Jerome Powell’s career. Jones also warned that Powell could trigger a massive sell off of risky assets if he doesn’t do a good job of signaling a decrease.
Investors will also be watching another inflation indicator released on Tuesday, the Producer Price Index – which measures prices paid to producers as opposed to consumer prices – is expected to rise 0.5% in May, according to estimates. from Dow Jones.
Data released for Europe includes UK unemployment figures for April, final inflation data for Germany, Italy and France for May and Eurozone trade balance data for April. There are no major results releases.
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– CNBC’s Maggie Fitzgerald contributed reporting for this story.