European stocks head for mixed open as market uncertainty lingers

Holly Ellyatt@HollyEllyatt

LONDON — European stocks are expected to open in mixed territory Tuesday, with market uncertainty lingering over the outlook for interest rate cuts.

The U.K.’s FTSE index is expected to open 28 points lower at 8,334, Germany’s DAX flat at 18,426, France’s CAC 40 down 6 points at 7,499 and Italy’s FTSE MIB up 6 points at 33,368, according to data from IG.

Global markets will be focused on key Federal Reserve events this week. Minutes from the central bank’s most recent meeting will be released Wednesday, before Fed Chair Jerome Powell’s Jackson Hole, Wyoming, speech on Friday.

Both events could give investors more clarity on the outlook for interest rate cuts and what to expect at the Fed’s next meeting. Fed futures funds pricing indicates a roughly 76% likelihood of central bank policymakers lowering rates by 25 basis points in September, per the CME FedWatch Tool.

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Asia-Pacific markets were mostly up on Tuesday, tracking the Wall Street rally Monday, while investors also assessed minutes of the Reserve Bank of Australia’s latest meeting. U.S. stock futures were flat last night after the S&P 500 and the Nasdaq Composite notched their longest winning streaks of 2024. 

Data releases in Europe Tuesday include Germany’s producer price index, the latest monetary policy decision from Sweden’s central bank and the EU’s final year-on-year inflation rate.

Source : cnbc