European stocks look set to open on a mixed note Tuesday as investors await the U.S. consumer price inflation report later in the day for important clues on the path of interest rates.
U.S. CPI data is expected to show inflation easing to a year-on-year rate of 3.3 percent in October from 3.7 percent in the prior month. Core prices are expected to remain unchanged from the previous month.
U.S. producer price inflation data and a string of speeches from Fed officials due this week may also shed more light into the Fed’s next interest-rate decision.
Meanwhile, the United States faces another potential government shutdown if Congress cannot pass funding legislation by November 17.
Asian stocks traded mostly higher, with Chinese and Hong Kong markets underperforming following weak lending data and ahead of a meeting between Chinese and U.S. presidents amid a deteriorating geopolitical political climate.
The dollar eked out modest gains in Asian trade, sending bullion prices lower.
Oil extended overnight gains as bullish reports from OPEC and Goldman Sachs helped ease worries about waning demand.
U.S. stocks ended mixed overnight amid lingering concerns regarding the country’s fiscal deficits and debt affordability.
Underlying sentiment was underpinned after the New York’s Fed survey showed American consumers’ short-term inflation expectations fell in October.
The Dow inched up 0.2 percent while the tech-heavy Nasdaq Composite slipped 0.2 percent and the S&P 500 finished marginally lower following Friday’s strong rally.
European stocks closed higher on Monday as investors looked ahead to key inflation data and the highly anticipated Biden-Xi meeting on the sidelines of the G20 leaders’ summit.
The pan European STOXX 600 jumped 0.8 percent. The German DAX rose 0.7 percent, France’s CAC 40 gained 0.6 percent and the U.K.’s FTSE 100 added 0.9 percent.
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