European stocks may open higher on Tuesday amid easing worries of an imminent tapering of Fed stimulus and on optimism that the FDA’s approval of the Pfizer and BioNTech COVID shot will help boost the immunization drive.
The dollar index held steady after falling sharply Monday on expectations that decelerating global business activity will act as a restraint on central bank intentions to start dialing back monetary stimulus in the near term.
Market participants have scaled down their expectations that Fed Chair Jerome Powell’s speech at Jackson Hole this week will indicate a timeline for winding down the Fed’s bond-buying program.
Asian markets rose broadly after China’s central bank called for more credit support to the real economy, especially small, medium and micro enterprises.
Treasuries were steady while oil was little changed after climbing the most in nine months overnight.
Gold traded above the key $1,800 psychological level, boosted by the weaker dollar and Bitcoin hovered near $49,000.
U.S. stocks ended on a firm note overnight as commodity prices recovered and regulators granted full approval for the Pfizer-BioNTech coronavirus vaccine.
Economic data proved to be a mixed bag, with July home sales beating forecasts while growth at U.S. services and factories slowed to an eight-month low.
The Dow rose 0.6 percent, the S&P 500 climbed 0.9 percent and the-heavy Nasdaq Composite rallied 1.6 percent.
European stocks recovered from their biggest weekly loss in nearly six months on Monday after the release of strong Eurozone economic data.
The pan European Stoxx 600 advanced 0.7 percent. The German DAX and the U.K.’s FTSE 100 both edged up around 0.3 percent, while France’s CAC 40 index gained 0.9 percent.
Market Analysis
European Shares Set To Open On Steady Note
2021-08-24 05:27:24
