European stocks may struggle for direction on Tuesday as investors await key speeches from Fed officials, Fed Chair Powell’s congressional testimonies and the Bank of England’s interest-rate decision due this week for clues on the monetary policy path ahead.
Markets await Fed Chair Jerome Powell’s congressional testimonies on Wednesday and Thursday for clues on additional interest-rate hikes, if any.
The Bank of England is scheduled to announce its policy on Thursday, with economists expecting the central bank to raise interest rates by a quarter point to a 15-year high of 4.75%, marking its 13th straight rate rise.
On Monday, two ECB policymakers argued for more rate hikes amid risks of higher inflation.
Asian markets traded mixed as concerns about China’s slow economic recovery offset optimism over the country’s central bank cutting its one-year and five-year loan prime rates. The dollar was buoyant, sending oil and gold prices lower.
U.S. markets were closed on Monday for the Juneteenth holiday.
European stocks fell notably on Monday as investors fretted about the outlook for inflation, interest rates and economic growth.
The pan European STOXX 600 lost 1 percent. The German DAX and France’s CAC 40 both fell around 1 percent while the U.K.’s FTSE 100 shed 0.7 percent.
Market Analysis
European Shares May Struggle For Direction At Open
2023-06-20 05:42:34
