European stock futures drift lower; Fed meeting, Eurozone CPI in… – Investing.com

Investing.com – European stock markets are expected to open calmly on Tuesday, as investors await the start of the U.S. Federal Reserve’s crucial two-day policy meeting as well as the release of new euro zone inflation data .

At 02:00 ET (06:00 GMT), Germany’s DAX futures were trading down 0.2%, France’s CAC 40 futures fell 0.3% and the Kingdom’s FTSE 100 futures fell 0.3%. -United fell 0.2%.

Fed meeting calls for caution/h2

Investors should adopt a cautious start to trading on Tuesday as they await news from Washington as Federal Reserve policymakers begin discussing their response to the U.S. economic outlook.

The U.S. central bank is widely expected to keep interest rates steady in a range of 5.25% to 5.50% at the end of its meeting on Wednesday, after raising them in 11 of its 12 latest meetings with the aim of curbing inflation.

But markets aren’t entirely in agreement on whether the Fed will call it quits now or raise rates once again this year as inflation remains above its 2% target.

Final Eurozone CPI data released for August/h2

Back in Europe, final Eurozone inflation figures for August are due later in the session and are expected to confirm that the CPI rose 0.6% over the month, an increase 5.3% on an annual basis.

This figure remains significantly above the European Central Bank’s medium-term inflation target of 2%, hence the central bank’s interest rate hike last week. But core inflation, which excludes volatile energy and food prices, is expected to fall to 5.3% from 5.5% annually.

The ECB raised its deposit rate to a record 4% last week, but also hinted at a pause in its rate hike cycle as policymakers assess the impact of numerous interest rate increases on the region’s economy.

Authorities will need until March to be sure that last week’s hike will be the last and further rate hikes cannot yet be ruled out, Slovak politician Peter Kazimir said on Monday.

Credit Suisse takeover delayed by ‘slow’ approval/h2

In the business sector, profits are expected from the DIY chain Kingfisher (LON: KGF) and Ocado (LON: OCDO) Retail.

UBS (SIX:UBSG) could also come under scrutiny, after the Swiss banking giant identified at least four countries – South Korea, India, Ireland and Saudi Arabia – as being “slow” to grant the regulatory approvals it needs to complete its takeover. Credit Suisse, according to a Reuters report.

Crude gains linked to weak US shale production/h2

Oil prices continued to advance on Tuesday, rising for the fourth consecutive session, on renewed supply concerns following the release of weak US shale production forecasts.

U.S. oil production from major shale-producing regions is on track to fall for a third straight month in October to its lowest level since May 2023, the U.S. Energy Information Administration said in its monthly report on Monday. on drilling productivity.

That added to fears of a substantial supply shortfall this year resulting from prolonged production cuts by Saudi Arabia and Russia.

At 2:00 a.m. ET, U.S. crude futures were trading 0.7% higher at $91.24 a barrel, while the Brent contract climbed 0.6% to $95.00.

Prices have risen for three straight weeks and are now around 10-month highs for both benchmarks.

Additionally, gold futures fell 0.1% to $1,952.10/ounce, while EUR/USD traded 0.1% lower at 1.0680.