European stocks may open on a positive note Tuesday after U.S. stocks ended the previous session higher with a stunning turnaround just before the closing bell.
However, U.S. stock futures fell in Asian trading amid Fed rate hike worries and concerns over the situation in Ukraine.
After NATO said it was putting forces on standby and reinforcing Eastern Europe with more ships and fighter jets, Russia accused the West of “hysteria” and putting out information “laced with lies.”
On the Covid-19 front, WHO director-general Tedros Adhanom Ghebreyesus warned that conditions remain ideal for more coronavirus variants to emerge and it’s dangerous to assume Omicron is the last one or that “we are in the endgame.”
Concerns about tightening monetary policy will continue to weigh as the Fed begins a two-day policy meeting later today, with the latest monetary policy decision due Wednesday afternoon.
The accompanying statement could hint at the first rate hike as early as the next meeting in mid-March.
It’s another busy day ahead on the economic calendar, with German business sentiment figures, public sector finance data from the U.K. and U.S consumer confidence numbers likely to be in focus.
Asian markets fell, Treasuries were mixed and the dollar held near a two-week high while gold prices were little changed. Oil prices rose slightly after falling about 2 percent in the U.S. session overnight.
U.S. stocks recovered from an early sell-off to end modestly higher overnight as the recent pullback in risk assets appeared overdone.
The Dow dropped over 1,000 points at its worst to reach its lowest level in more than nine months before ending the day 0.3 percent higher.
The Nasdaq Composite plunged as much as 4.9 percent to hit multi-month lows before closing 0.6 percent higher while the S&P 500 edged up 0.3 percent.
European stocks ended deep in the red on Monday, with tech stocks falling the most as investors braced for hawkish Fed update.
The pan European Stoxx 600 plummeted 3.8 percent. The German DAX plunged 3.8 percent, France’s CAC 40 index slumped 4 percent and the U.K.’s FTSE lost 2.6 percent.
Market Analysis
European Shares Seen Higher After Wall Street Rebound
2022-01-25 05:51:09
