European Markets Set For Mostly Higher Open After Big Reversal In U.S. Markets

May 3, 2022

European markets are set to open mostly higher on Tuesday, clawing back Monday’s losses, as investors monitor key monetary policy decisions around the world.

It comes after U.S. markets staged a major reversal to start the month on Monday, with the Nasdaq Composite rising 1.63% late in the day, after falling 1.07% earlier, and the S&P 500 increasing 0.57% despite hitting a new year-low in the session.

Britain’s FTSE 100 is expected to open around 56 points lower Tuesday, at 7,489, having been closed on Monday for a public holiday. Germany’s DAX is seen around 113 points higher at 14,052 and France’s CAC 40 is set to gain around 42 points to 6,468.

European markets closed sharply lower a day earlier as investors digested weak economic data out of China and Germany, and a sudden “flash crash” in Sweden’s OMX 30 index.

Focus will turn this week to monetary policy decisions from major central banks, with the U.S. Federal Reserve expected to announce a half-percentage point increase to its benchmark interest rate on Wednesday. Market fears have been mounting as to how aggressive policymakers will have to be in order to rein in inflation.

Australia on Tuesday hiked its interest rate for the first time in more than a decade as consumer prices surge.

Stocks across Asia-Pacific were mixed on Tuesday, with Hong Kong’s Hang Seng index climbing on its return to trade from a public holiday.

U.S. stock futures were fractionally higher in early premarket trade on Tuesday after Monday’s volatile session. Wall Street is coming off a brutal April, the worst since March 2020 for the S&P 500 and the Dow.

Global investors continue to monitor the war in Ukraine and its geopolitical implications, with EU leaders set to work on a Russian oil embargo this week.

The United Nations and the International Committee of the Red Cross on Monday began evacuating civilians from the besieged southern port city of Mariupol.

SOURCE: CNBC
IMAGE CREDIT: Freeimages

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