European Shares Seen Up Before Central Bank Meetings
European stocks are likely to open higher on Tuesday ahead of this week’s highly-anticipated central bank meetings.
The dollar hovered near 20-year highs, while gold held near its lowest level since mid-February 2022 amid expectations the U.S. Federal Reserve will hike interest rates by a half-a-percentage point when it hands down its policy decision on Wednesday – the first such increase in about 20 years.
The Bank of England is expected to raise interest rates to their highest level since 2009 on Thursday.
The Aussie dollar jumped as soaring inflation forced the Reserve Bank of Australia to raise the cash rate for the first time in 11 years.
Meanwhile, the European Commission is expected to finalize work on a new package of EU sanctions against Russia over its actions in Ukraine today.
The bloc’s decision came after a major shift on Monday by Germany, which happens to be Russia’s biggest energy customer.
Unemployment data from Euro area and Germany are due later in the session, headlining a light day for the European economic news.
Asian stocks traded mixed in thin trade, with markets in China, Japan and some other countries closed for holidays. Oil prices slipped after ending a volatile session higher overnight.
U.S. stocks recovered from an early slide to end on a firm note overnight, shrugging off weak manufacturing data and concerns over interest rates as the U.S. 10-year Treasury yield breached 3 percent for the first time in more than three years.
The Dow edged up 0.3 percent and the S&P 500 gained 0.6 percent while the tech-heavy Nasdaq Composite jumped as much as 1.6 percent.
European stocks declined on Monday as investors digested disappointing factory activity data from China, Europe and the United States.
The pan European Stoxx 600 tumbled 1.5 percent. The German DAX fell 1.1 percent and France’s CAC 40 index shed 1.7 percent while the U.K. markets were closed for a bank holiday.
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