BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are likely to open higher on Tuesday after the Bank of Japan kept its ultra-low interest rates unchanged, as widely expected, and said it would not hesitate to make adjustments if necessary.
The focus now shifts to the FOMC meeting on Tuesday and Wednesday with the near certainty of a 25 basis point rate cut.
The Bank of England is set to hold interest rates but publish new projections on 'Super Thursday' as the new government led by PM Boris Johnson ramps up preparations for a no-deal Brexit.
Meanwhile, two months after U.S.-Chinese talks aimed at ending a tariff war broke down, both sides are meeting again in Shanghai today to try and do a deal.
Top trade negotiators from the U.S. and China are meeting for the first time in almost three months to try and do a deal, amid low expectations for a breakthrough.
Asian markets inched higher and the dollar held near multi-month highs, while concerns about a no-deal Brexit sent the pound to a 28-month low.
British prime minister Boris Johnson has declared the 'undemocratic' backstop arrangement between the country and the EU 'is dead' but insisted a Brexit deal can be reached.
'Once we leave the EU on 31st October, we will have a historic opportunity to introduce new schemes to support farming - and we will make sure that farmers get a better deal,' he said.
Gold traded mixed while oil prices rose on optimism over Sino-U.S. trade talks and Middle East tensions.
Economic confidence figures from euro area and flash inflation data from Germany are due later in the day, headlining a hectic day for the European economic news.
France Insee publishes first estimate for the second quarter GDP data. The economy is forecast to grow 0.3 percent sequentially, the same rate as seen in the first quarter.
Overnight, U.S. stocks ended mixed as investors awaited Apple's earnings and the outcome of this week's Fed policy meeting.
The Dow Jones Industrial Average inched up 0.1 percent while the tech-heavy Nasdaq Composite shed 0.4 percent and the S&P 500 slid 0.2 percent.
European markets also ended Monday's session on a mixed note ahead of the Fed meeting and planned U.S.-China trade talks.
The pan European Stoxx 600 edged up marginally. The German DAX finished marginally lower and France's CAC 40 index dropped 0.2 percent while the U.K.'s FTSE 100 rallied as much as 1.8 percent, thanks to investor excitement over mergers and acquisitions and a sinking pound on hard Brexit fears.
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