European stocks opened lower on the first day of the trading week, as market participants focus on the anticipating meeting of the Federal Reserve (Fed) scheduled for December 17-18. Investors continue to speculate over whether the central bank would begin to scale-back on its monthly stimulus.
The pan-European Euro Stoxx 50 edged 0.2% lower at 2,922.40, while the German DAX declined 0.06% to 9,001.30.
At the same time, the French CAC 40 moved down 0.19% to 4,051.50, while the UK’s main gauge FTSE 100 fell 0.25% lower at 6,422.80.
The French flash manufacturing Purchasing Managers’ Index (PMI) dropped to 47.1 points in December, down from the previous reading of 48.4 in November and below forecast of 49.0 points, reports from the Markit Economics confirmed.
Meanwhile in Germany, the country is expected to report its manufacturing and services flash PMI reports at 8:30am GMT. An increase of 53 in the manufacturing reading for December is expected, slightly up from the previous reading of 52.7 points in November, while services reading is expected to show a slight drop.
Markit Economic is expected to release the eurozone’s flash manufacturing and services PMI for this month later today.
The National Institute for Statistics (Istat) in Italy is expected to report the trade balance data for the month of October at the same time.
The President of the European Central Bank (ECB) Mario Draghi is expected to testify on monetary policy before the European Parliament’s Committee on Economic and Monetary Affairs in Brussels later during the day.
European Stocks – Federal Reserve Meeting
Members of the Federal Open Market Committee will meet for the final time this year for the Fed December meeting scheduled to begin Tuesday till Wednesday. The meeting will reveal clues as to when the central bank would begin to taper its monthly asset-purchasing program.
Some of the recent macroeconomic reports released are indicating a stronger recovery in the world’s largest economy. Analysts are expecting tapering to begin following the meeting, due to the improved labour market and the US budget deal concluded last week.
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