European stocks mixed; Fed meeting, eurozone CPI prompts caution

Investing.com - European stock markets traded in a mixed fashion Tuesday, as investors await the start of the crucial two-day U.S. Federal Reserve policy meeting as well as the release of more inflation data from the eurozone.

At 03:50 ET (07:50 GMT), the DAX index in Germany traded 0.1% lower, while the CAC 40 in France climbed 0.1% and the FTSE 100 in the U.K. traded 0.1% higher.

Fed meeting prompts caution

Trading is taking places in tight ranges Tuesday as investors cautiously await news from Washington as Federal Reserve policymakers begin discussing their response to the U.S. economic outlook.

The U.S. central bank is widely expected to keep interest rates steady at a range of 5.25% to 5.50% when the meeting concludes on Wednesday, after raising them at 11 of its past 12 meetings in a bid to cool inflation. 

But markets are not in full agreement whether the Fed will be done as of now or whether it will raise rates one more time this year, as inflation still remains above its 2% target.

Final August eurozone CPI data due

Back in Europe, the eurozone’s final inflation figures for August are due later in the session, and are expected to confirm that CPI rose 0.6% on the month, a rise of 5.3% on an annual basis.

This is still substantially above the European Central Bank’s 2% medium term inflation target, hence the central bank’s interest rate hike last week. But core inflation, which excludes volatile energy and food prices, is seen falling to 5.3% from 5.5% annually.

The ECB raised its deposit rate to a record high 4% last week but also hinted at a pause in its rate-hiking cycle as the policymakers assess the impact of the numerous interest rate increases on the region’s economy.

Officials will need until March to be sure that last week’s rise was the last and further rate hikes cannot yet be ruled out, Slovak policymaker Peter Kazimir said on Monday.

Kingfisher issues profit warning

In the corporate sector, Kingfisher (LON:KGF) stock fell almost 6% after the DIY chain issued a profit warning, citing disappointing results from its French and Polish businesses.

Ocado (LON:OCDO) stock rose 3% after the online grocer posted a sharp rise in sales from its retail arm, and opened its new Luton distribution centre, aimed at cutting costs of its operation.

Naked Wines (LON:WINEW) stock slumped 8.6% after the online wine retailer posted a hefty loss and warned of its to it continuing as a going concern.

Crude gains on weak U.S. shale production

Oil prices continued to power ahead Tuesday, rising for the fourth consecutive session, on further supply concerns following the release of a weak U.S. shale production forecast.

U.S. oil output from top shale-producing regions is on track to fall for a third month in a row in October to the lowest level since May 2023, the U.S. Energy Information Administration said in its monthly drilling productivity report on Monday.

This has added to worries of a substantial supply deficit this year stemming from extended production cuts by Saudi Arabia and Russia.

By 03:50 ET, the U.S. crude futures traded 0.7% higher at $91.23 a barrel, while the Brent contract climbed 0.5% to $94.90. 

Prices have gained for three consecutive weeks, and are now around 10-month highs for both benchmarks.

Additionally, gold futures rose 0.1% to $1,955.55/oz, while EUR/USD traded 0.1% lower at 1.0682.

 

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.8% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: