European Shares Seen Higher Ahead Of US Inflation Data

stockmarkets jan11 14sep21 lt

European stocks are seen opening on a positive note Tuesday as investors wait for U.S. August inflation data due out later in the day for directional cues.

The Federal Reserve has generally stuck to its transitory inflation view, but investors think that risks are tilted to the upside, as consumer and business activity revives.

The dollar held steady while spot gold eased as investors more clues on the Fed's tapering plans.

The Fed's two-day monetary policy meeting is scheduled for next Tuesday and Wednesday, but recent signs of slowing economic momentum could lead the central bank to hold off on discussing tapering.

Asian markets traded mixed, while oil rose for a third day to hover near a six-week high as energy firms brace for another storm just weeks after Hurricane Ida cut local production.

Overnight, U.S. stocks rose broadly as traders went bargain hunting following the downward move seen over the past several sessions.

The Dow climbed 0.8 percent and the S&P 500 edged up 0.2 percent to snap five-session losing streaks, while the tech-heavy Nasdaq Composite index slid marginally to extend losses for the fourth straight session.

European stocks closed higher for the first time in five days on Monday amid optimism about growth.

The pan European Stoxx 600 gained 0.3 percent. The German DAX and the U.K.'s FTSE 100 both rose around 0.6 percent while France's CAC 40 index inched up 0.2 percent.

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