The website of European markets are set to open slightly higher on Tuesday as they follow the global trend towards upwards but sentiment is still fragile in the lead-up to this week’s U.S. Fed’s policy gathering.
At 02:02 (ET) (06:00 GMT), the DAX futures contract in Germany was trading 0.4 percent higher. the CAC 40’s options in France increased by 0.1 percent and that of the FTSE 100 futures contract in the U.K. rose 0.3%.
The main U.S. benchmark averages lifted from their 9-week lows and ended higher on Monday. This upbeat mood has remained throughout Asian trading and is expected to lift European shares as traders look to recover from the sell-off of last week.
However the market is likely to remain cautious until the the Fed’s next meeting which is widely anticipated to lead to another 75 basis points interest rate increase following last week’s more than anticipated consumers’ inflation numbers.
Related: European stocks drop sharply, and retail sales in the UK fall.
The Fed will not be the only one to consider increasing rates this week, as the Bank of England and the Swiss National Bank and the Norges Bank in Norway all set to follow the same pattern in Europe.
The Bank of Japan is also scheduled to make a decision on its monetary policy next week, however this central bank isn’t likely to increase lending rates from the current negative level.
As for Europe It’s a peaceful day for economic data even though German producer prices increased by to a staggering 7.9 percent in August. during August. This is which is an rise of an astonishing 45.8 percent.
In news from the corporate world, Kingfisher (LON: KGF) and Tui (ETR: TUIGn) are scheduled to announce their latest quarterly results on Tuesday.
Additionally, Unicredit (BIT: CRDI) will likely to be the focus of attention as the chief executive of Italy’s second-largest lender, Andrea Orcel, told the German daily Handelsblatt that the bank is looking into acquisitions in Germany as part of its plans to transform into a fully developed European bank.
The price of oil remained steady on Tuesday ahead of the beginning of the Fed’s two day meeting which is expected to lead to more tightening of monetary policy to fight inflation which could impede growth in the economy and the demand for oil.
The American Petroleum Institute is an industry-related body that announces its most recent estimate of U.S. crude stocks later in the day with the previous week’s figures that showed a massive 6 million barrel increase.
By 02:00 ET, U.S. crude futures were 0.1 percent lower at $85.31 per barrel, while the Brent contract increased 0.1 percent to $92.07.
Related: European stock futures go down, and fears of a recession grow.
In addition, gold futures gained 0.1 percent to $1,678.95/oz and USD/EUR traded 0.1 percent more higher, at 1.0019.