European Shares Seen Up On Bargain Hunting
European stocks may open a tad higher on Tuesday as investors hunt for bargains in beaten-down stocks.
U.S. inflation is “unacceptably high” and therefore more restrictive policy will be needed for longer to ensure inflation expectations do not move up, said Cleveland Fed President Loretta Mester.
The World Bank has cut its 2022 full-year growth forecast for the East Asia and Pacific region to 3.2 percent from its April forecast of 5 percent, citing a sharp slowdown in China as a result of its strict zero-COVID rules.
Asian markets struggled to recover from recent string of losses as data showed profits at China’s industrial firms shrank at an accelerated pace from January to August.
The dollar index was marginally weaker, helping oil prices rebound from near-month lows hit on Monday.
Gold edged up but held close to a 2-1/2-year low on expectations of further policy tightening by the U.S. Federal Reserve.
Money supply data from the euro area is due later in the session, headlining a light day for the European economic news.
ECB Chief Christine Lagarde is scheduled to speak at an online conference organized by the Banque de France in Paris.
Across the Atlantic, reports on durable goods orders, consumer confidence and new home sales are likely to attract attention later today along with remarks by Fed Chair Jerome Powell.
U.S. stocks extended their losing streak to a fifty day on Monday as investors fretted over a combination of interest-rate, currency and economic risks.
The Dow fell 1.1 percent to fall into a bear market for the first time in more than two years as recessions fears grew.
The S&P 500 lost 1 percent to fall below its June closing low and the tech-heavy Nasdaq Composite shed 0.6 percent.
European markets settled broadly lower on Monday, as Britain’s new chancellor Kwasi Kwarteng announced a sweeping package of tax cuts and ECB President Christine Lagarde said the central bank would continue increasing borrowing costs over the next several meetings despite a ‘darkening’ economic outlook.
The pan European Stoxx 600 declined 0.4 percent. The German DAX dipped half a percent and France’s CAC 40 index slipped 0.2 percent while the U.K.’s FTSE 100 ended flat with a positive bias.
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