Europe heads for mixed open as markets digest Powell’s comments on cutting rates

Holly Ellyatt@HOLLYELLYATT

LONDON — European stocks are expected to open in mixed territory Tuesday as investors assess the economic and political outlook in the region and beyond.

The U.K.’s FTSE index is seen opening 15 points lower at 8,164, Germany’s DAX down 19 points at 18,580, France’s CAC 40 up 7 points at 7,633 and Italy’s FTSE MIB down 31 points at 34,493, according to data from IG.

Global markets are digesting dovish comments from U.S. Federal Reserve Chair Jerome Powell in which he said the central bank will not wait until inflation hits 2% to cut interest rates, as the Fed’s policy works with “long and variable lags.”  

So, “if you wait until inflation gets all the way down to 2%, you’ve probably waited too long,” he said Monday.

His comments, combined with expectations that the failed assassination attempt on Republican presidential candidate Donald Trump will lead to big gains for the party and friendlier fiscal policies from a Trump administration, sent Wall Street higher Monday.

Asia-Pacific markets were mixed overnight as traders reacted to Powell’s comments. U.S. stock futures were slightly higher on Monday after the Dow Jones Industrial Average closed at a record high.

Ocado, SEB and Swedbank are releasing earnings in Europe, and there are no major data releases.

Source : cnbc