European stocks may open flat to slightly lower on Tuesday after Israeli Prime Minister Benjamin Netanyahu rejected calls for a ceasefire in Israel’s war against Hamas and vowed the country would “fight until this battle is won.”<\/p>\n
Growth worries also returned to the fore after an official survey showed Chinese manufacturing activity unexpectedly returned to contraction in October – suggesting more policy support may be needed to ensure the economy<\/span> reaches Beijing’s annual 5 percent growth target.<\/p>\n The official purchasing managers’ index (PMI) fell to 49.5 from 50.2 in September while non-manufacturing activity grew at a slower pace with the corresponding PMI dropping to 50.6 from 51.7.<\/p>\n Asian stocks traded mixed, with benchmark indexes in South Korea and Hong Kong leading losses as investors looked ahead to the Fed and BOE meetings this week. <\/p>\n Both the Fed and Bank of England aren’t expected to make any rate adjustments. <\/p>\n Earlier today, the Bank of Japan allowed more flexibility in its yield-curve control policy – allowing 10-year Japanese government bond yields to increase above 1 percent in response to inflation pressures and volatility concerns. <\/p>\n The dollar index was slightly higher while gold traded flat after slipping below the $2,000\/ounce level in the previous session.<\/p>\n Oil prices rose after falling nearly 3 percent in the previous session on demand concerns and amid signs that the Israel-Hamas war will remain contained.<\/p>\n Inflation and quarterly national accounts from the euro area are awaited later in the day, headlining a hectic day for the European economic news.<\/p>\n Across the Atlantic, trading may be impacted by reaction to reports on home prices, consumer confidence and Chicago-area business<\/span> activity ahead of the Fed’s highly anticipated policy decision on Wednesday and the closely watched monthly employment report due later in the week. <\/p>\n U.S. stocks rallied overnight following last week’s sell-off, as investors looked ahead to the Fed’s rate decision and Apple’s earnings.<\/p>\n The S&P 500 rebounded 1.2 percent after officially slipping into coercion territory. The Dow climbed 1.6 percent as McDonald’s beat estimates for quarterly results.<\/p>\n The tech-heavy Nasdaq Composite gained 1.2 percent as Treasury yields dropped and oil prices tumbled, easing concerns around inflation and interest rates.<\/p>\n European stocks closed higher on Monday as Middle East worries eased and data showed cooling inflation and economic growth in Germany, the bloc’s biggest economy.<\/p>\n The pan-European STOXX 600 inched up 0.4 percent. The German DAX edged up 0.2 percent, France’s CAC 40 rose 0.4 percent and the U.K.’s FTSE 100 added half a percent. <\/p>\n