Plus   Neg

European Shares Likely To Open On Firm Note


European stocks look set to open flat to slightly higher on Tuesday as investors await monetary policy announcements by three major central banks and the most crucial House of Commons vote on Brexit.

Asian stocks are broadly higher and the dollar firmed up to hit a three-week high against the yen as a highly anticipated U.S.-Korea summit got underway in Singapore.

Analysts expect no major breakthroughs from the meeting even as both leaders face considerable pressure to pull off a success after an elevation in geopolitical tensions last year.

Secretary of State Mike Pompeo indicated on Monday the U.S. is prepared to offer North Korea "unique" security assurances in exchange for the complete, verifiable and irreversible denuclearization of the Korean peninsula.

Meanwhile, the Federal Reserve is widely expected to raise interest rates by 25 basis points when it meets Tuesday and Wednesday.

The European Central Bank has already indicated that its upcoming meeting on Thursday will be used to discuss ending its bond purchasing program.

Overnight, U.S. stocks finished slightly higher as investors shrugged off concerns over a tumultuous G-7 meeting over the weekend and looked ahead to the historic Trump-Kim summit.

The Dow Jones Industrial Average inched up marginally and the S&P 500 edged up 0.1 percent to reach their best closing levels in three months while the tech-heavy Nasdaq Composite rose 0.2 percent.

European markets closed Monday's session firmly in positive territory after comments from Italy's new finance minister soothed investor concerns that the country would exit the Euro.

The pan-European Stoxx Europe 600 index advanced 0.7 percent to end higher for the first time in five days. The German DAX gained 0.6 percent, France's CAC 40 index rose 0.4 percent and the U.K.'s FTSE 100 added 0.7 percent.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT