Markets in Europe are expected to open on a positive note on Tuesday despite worries about the future of monetary policy in the region as well as in the U.S. Markets are keenly watching out for monetary policy cues from the central bankers converging in Jackson Hole, Wyoming on Thursday.
Wall Street had closed on a mixed note on Monday, as a massive rally in Nvidia ahead of its earnings update on Wednesday lifted the Nasdaq Composite about 1.6 percent to 13,497.59. Tesla also added more than 7 percent in the day’s trading. Rate hike worries however lingered and the Dow Jones Industrial Average shed 0.11 percent to finish trading at 34,463.69.
A broadly positive sentiment prevailed at the European bourses on Monday. France’s CAC 40 surged 0.47 percent. The pan-European Stoxx-50 added 0.29 percent. Germany’s DAX gained 0.19 percent whereas Switzerland’s SMI edged up 0.09 percent. U.K.’s FTSE 100 however erased 0.06 percent.
Current indications from the European stock futures indicate a mildly positive sentiment. The FTSE 100 Futures (Sep) is trading 0.11 percent lower. The DAX Futures (Sep) is currently trading 0.41 percent higher. The CAC 40 Futures (Sep) closed 0.84 percent higher on Monday. The pan-European Stoxx 50 Futures (Sep) has edged up 0.5 percent. The SMI Futures (Sep) was last traded 0.38 percent higher.
American stock futures however indicate a weak sentiment, as Fed fears linger ahead of Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium. The US 30 (DJIA) is trading 0.11 percent lower, whereas the US500 (S&P 500) is trading 0.12 percent lower.
Asian stock markets are trading on a mixed note. Japan’s Nikkei 225 is trading 0.84 percent higher. South Korea’s KOSPI has gained 0.15 percent. India’s Nifty 50 has edged up 0.12 percent. New Zealand’s NZX 50 and Australia’s S&P ASX 200 are trading 0.03 percent lower. Hong Kong’s Hang Seng has dropped 0.06 percent. China’s Shanghai Composite has shed 0.46 percent.
The greenback’s weakness continued and the Dollar Index (DXY), a measure of the U.S. dollar’s strength relative to six currencies, has declined 0.11 percent to 103.18 versus the previous close of 103.3. The EUR/USD pair has increased 0.17 percent to 1.0910 whereas the GBP/USD pair has added 0.13 percent to trade at 1.2771.
Amidst the dollar’s weakness, gold prices are firm above the flatline. Gold Futures for December settlement are trading at $1,924.35 per troy ounce, up 0.07 percent from the previous close.
Crude oil prices are trading lower upon renewed concerns about demand from China. Brent Crude Futures for October settlement decreased 0.22 percent to $84.27 whereas WTI Crude Futures for October settlement dropped 0.22 percent to $79.94.
The major economic data releases due on Tuesday from the region are Trade data for July from Switzerland and the CBI Industrial Trends Orders data for August from the U.K.
Major earnings updates due from the region on Tuesday include Royal Unibrew, Wise, Johnson Matthey and Rostelekom DRC.
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