European Markets Set To Open Higher On Recovery Hopes; Fed In Focus

European stocks are expected to open higher Tuesday as market attention focuses on the global economic recovery and the latest meeting of the U.S. Federal Reserve.

London’s FTSE is seen opening 36 points higher at 6,782, Germany’s DAX up 37 points at 14,503, France’s CAC 40 up 20 points at 6,057 and Italy’s FTSE MIB up 122 points at 24,222, according to IG.

Market focus is on the Federal Reserve which kicks off its two-day meeting on Tuesday, followed by a statement and briefing from Chairman Jerome Powell on Wednesday.

A surge in interest rates and a rebounding U.S. economy has put the central bank’s easy policies in the spotlight and market watchers have questioned when the Fed may consider unwinding those policies.

Later this week, the Bank of England is due to meet on Thursday and the Bank of Japan will also begin its two-day policy meeting that day.

Asia-Pacific markets edged higher on Tuesday, following a relatively subdued start to the global trading week as investors look ahead to the Fed meeting. U.S. stock index futures declined during overnight trading on Monday, after the Dow and S&P closed at record highs amid optimism over the economic reopening.

Coronavirus vaccine news remains in focus in Europe after Germany became the latest country Monday to suspend use of the AstraZeneca-University of Oxford vaccine over blood clot concerns. The German government also said it was suspending its use as a precaution, with the vaccine regulator, the Paul Ehrlich Institute, calling for further investigations.

The World Health Organization, health experts and the vaccine maker have sought to downplay ongoing safety concerns, saying there is no evidence currently to suggest a link between the shot and an increased risk of developing blood clots. The European Medicines Agency is carrying out investigations.

Earnings come from VW, RWE, Zalando and Greggs on Tuesday. There are no major data releases.

– CNBC