BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening little changed on Tuesday as a two-day policy meeting of the U.S. Federal Reserve gets underway later today.
Traders overwhelmingly expect a 25-bps rate cut but prospects for 2026 look uncertain. The accompanying statement and Fed Chair Jerome Powell's remarks at the post-meeting press conference may offer clues about the likelihood of further rate cuts next year.
The day's economic calendar remains light, with a report on U.S. job openings for October likely to garner attention.
Asian markets were broadly lower, though overall losses remained limited after U.S. President Donald Trump approved H200 chip sales to China, enhancing AI capabilities under strict safeguards. The agreement marks a win for Nvidia after months of trade talks.
In another significant development, China's Politburo emphasized boosting domestic demand in 2026 while signaling a measured approach to stimulus.
U.S. Treasury yields climbed to the highest in more than two months, supporting the dollar. Crude prices extended losses, after having tumbled around 2 percent on Monday. Gold was subdued below $4,200 per ounce on expectations of limited Fed easing in 2026.
Overnight, U.S. stocks ended lower as Treasury yields gained on inflation worries and investors waited for clues about future policy moves from an apparently divided Fed.
The Dow dipped half a percent, the tech-heavy Nasdaq Composite slid 0.1 percent and the S&P 500 fell 0.4 percent.
European stocks ended subdued on Monday ahead of a busy week of central bank meetings.
The pan European Stoxx 600 ended flat with a negative bias. The German DAX inched up marginally, while France's CAC 40 finished marginally lower and the U.K.'s FTSE 100 eased 0.2 percent.
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