European stock set to open negative

By HY Markets Forex Blog

The European market is expected to start in a negative territory on Tuesday, while investors are still focused on the outcome from the Federal Reserve’s two-day meeting, which is expected to start later today. Investors are waiting for more information on whether the central bank would proceed with reducing its bond-buying program, which should be addressed in the Fed meeting.

Futures of the French CAC 40 slid 0.30% to 3,850.80 at 6:09am GMT, while the Germany’s DAX futures lowered by 0.26% to 8,199.30, UK FTSE 100 futures closed at 0.01 to 6,317.30 as of the same time. Futures of the pan-European Euro Stoxx 50 dropped by 0.50% to 2,689.50 as of 6.09am GMT as well.

The main focus on the Federal Reserve two-day meeting will be possible hints and clues as to when the central bank will slow down the $85 billion monthly bond purchases.

“We expect this nervousness to continue to dominate until the Federal Open Market Committee [FOMC] rate decision and Chairman Bernanke’s press conference on Wednesday, with asset prices remaining vulnerable to news headlines, keeping the volatility elevated,” analysts at Barclays wrote in a note.

The government of Spain will try and sell Treasury bills between 6 and 12 months, with a maximum target of five billion Euros.

 

German’s ZEW economic data for the month of June is expected to indicate a slight improvement of 37 points after the recording of 36.4 in May. While the euro zone as a whole, the ZEW index is expected to pick up to 29.4 in June from 27.6 in the previous month.

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