European markets are lower ahead of key events
European markets started the day with a slight downturn on Tuesday as investors geared up for a flurry of earnings reports and significant data releases across the region. The regional Stoxx 600 index was down by 0.18% at 9:13 a.m. London time.
Autos and Insurance Stocks Lead Decline
While most sectors experienced marginal declines, autos took a notable hit with a 1.49% fall, followed by insurance stocks, which dipped by 0.88%. However, sectors such as oil and gas, as well as food and beverage, saw gains, rising by 0.33% and 0.41%, respectively.
Key Euro Zone Data Awaited
Investors are eagerly awaiting preliminary euro zone inflation data for April and first-quarter gross domestic product (GDP) figures for the single currency area, both scheduled for release on Tuesday. Additionally, a lineup of earnings reports from companies including AF-KLM, Stellantis, Capgemini, Mercedes, VW, Lufthansa, Santander, Caixabank, OMV, HSBC, Glencore, and Whitbread is set to provide further insight into market movements.
Asia-Pacific Markets Rise, U.S. Futures Steady
Asia-Pacific markets predominantly saw gains on Tuesday, tracking movements in Wall Street. Investor focus remained on China's manufacturing purchasing managers’ index for April. Meanwhile, U.S. stock futures showed little change on Monday night, following a positive start to the week. Investors are preparing for upcoming megacap earnings reports, the Federal Reserve interest rate decision scheduled for Wednesday, and the release of the latest jobs report.
Market Eyes Federal Reserve Announcement
As anticipation builds around the Federal Reserve's interest rate decision, expected to keep rates steady, traders are particularly attentive to Fed Chair Jerome Powell’s post-meeting comments. Recent reports of higher inflation have led to speculation regarding the possibility of a more hawkish stance from the central bank.
