European stocks may drift lower at open on Tuesday as investors await the latest Fed announcement on Wednesday for clues on stimulus tapering and rates lift-off.
The Fed is likely to leave interest rates unchanged but could announce plans to begin scaling back its asset purchase program.
Markets will watch closely the Fed’s language on inflation and the timing of the first interest rate hike since December 2018.
The Bank of England’s meeting takes place on Thursday, with think-tanks divided on which way the rate decision would go.
Earlier today, the Reserve Bank of Australia kept the nation’s cash rate at the record low 0.1 percent for the 12th month in a row, but dumped one of its key stimulus measures, known as “yield curve control”, signaling that borrowing costs may have to rise sooner than expected.
Asian markets traded mostly lower amid concerns about elevated inflation. Gold prices eased, hurt by an uptick in the dollar and bond yields.
Oil prices held steady ahead of a key meeting of the Organization of the Petroleum Exporting Countries and its allies.
U.S. stocks eked out modest gains overnight to reach new record closing highs as upbeat earnings news outweighed disappointing manufacturing and construction spending data.
The Dow rose 0.3 percent, the tech-heavy Nasdaq Composite climbed 0.6 percent and the S&P 500 added 0.2 percent.
European markets finished at record highs on Monday as several countries eased travel curbs and Japan’s LDP retained a comfortable majority in the Lower House election.
The pan European Stoxx 600 rose 0.7 percent. The German DAX gained 0.8 percent, France’s CAC 40 index climbed 0.9 percent and the U.K.’s FTSE 100 advanced 0.7 percent.
Business News
European Shares Seen Lower As Investors Await Fed Moves
2021-11-02 05:43:26
