European Shares Seen Up In Cautious Trade As Fed Meeting Gets Underway
(RTTNews) - European stocks are seen opening on a positive note Tuesday amid growing bets that global central banks will adopt a less hawkish stance in the face of a potential bank breakdown.
A two-day meeting of the U.S. Federal Reserve gets underway today, with markets expecting a 25-bps rate hike on Wednesday. The Fed commentary and dot plot hold the key for future course of dollar and yields.
The Bank of England may press ahead with another rate rise on Thursday, with inflation data due from the Office for National Statistics on Wednesday likely to shape the interest-rate decision.
Asian stocks were seeing cautious gains, with Japanese markets shut for a public holiday.
The dollar regained some ground after hitting a five-week low overnight as bond markets whipsawed.
Gold traded marginally higher while oil prices slipped again after rebounding from 15-month lows overnight.
U.S. stocks closed higher overnight as a forced takeover of Credit Suisse by UBS and joint central bank actions to boost global dollar liquidity helped ease fears of a banking crisis.
The Dow climbed 1.2 percent, the tech-heavy Nasdaq Composite rose 0.4 percent and the S&P 500 advanced 0.9 percent.
European stocks shrugged off early weakness to finish higher on Monday.
The pan European STOXX 600 gained 1 percent after ECB President Christine Lagarde's assurance that Eurozone banks have capital and liquidity levels well beyond their requirements.
The German DAX rallied 1.1 percent, France's CAC 40 index surged 1.3 percent and the U.K.'s FTSE 100 added 0.9 percent.
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