European stocks are expected to open flat to lower territory on Tuesday, with the regional markets still struggling to attain momentum in the month of December.
Data from IG reported that the FTSE index of the UK is projected to open 0.12 percent lower, Germany’s DAX is flat, the CAC 40 of France is below 0.16 percent, and Italy’s FTSE MIB is falling slightly below the flatline.
The regional stocks traded dropped on Monday, as the last trading month of the year began on a dark note, as investors are now looking at the U.S. Federal Reserve to reduce interest rates at its meeting on December 9-10.
According to the CME FedWatch Tool, traders are pricing in an 87.2 percent probability of a quarter-point cut in rate.
Monetary Policy Committee at the Bank of England, Megan Greene, informed CNBC on Monday that the Bank of England is also keeping a close eye on the Fed on possible spillover effects.
Greene said to CNBC’s Ritika Gupta on Monday that “About half the moves in our curve actually are generated entirely outside the U.K.”
Although the BOE has not yet made a promise to reduce interest rates in December, economists generally anticipate that the central bank will do so with indices suggesting the slowing of inflation, which is most likely to be further stimulated by the disinflationary policies outlined in the Autumn Budget last week, combined with the sluggish growth and a deteriorating labor market.
U.S. stock futures appeared fairly flat on Monday night following a poor opening to December trading, and Asia-Pacific markets were trading generally higher.
There are no significant earnings on Tuesday in Europe. Data releases contain Spanish and Italian unemployment figures and EU inflation data.
