European stocks head for flat to higher open as markets turn to Fed, U.S. inflation data

Holly Ellyatt@HOLLYELLYATT

LONDON — European stocks are expected to open flat to higher Tuesday as investors look ahead to the Federal Reserve’s next meeting and U.S. inflation data.

The U.K.’s FTSE index is expected to open unchanged at 8,223, Germany’s DAX up 6 points at 18,493, France’s CAC 40 up 21 points at 7,897 and Italy’s FTSE MIB up 16 points at 34,568, according to IG.

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Regional markets fell on Monday as traders reacted to the EU Parliament elections and French President Emmanuel Macron’s decision to call a snap election after the right-wing National Rally party made strong gains.

Market attention is now shifting to the U.S. Federal Reserve’s latest rate decision and May’s consumer price index, which will be released Wednesday. The U.S. inflation data could be a key test for markets, especially after Friday’s strong jobs report continued to suggest the central bank could hold off on lowering rates.

Investors will be keeping a close eye on the Fed’s updated projections on the timing and frequency of rate cuts. Markets are now pricing in just one rate cut this year, in November, according to the CME FedWatch Tool.

Source : cnbc