European stock markets started the day with gains.
After the opening, the Stoxx Europe 600 benchmark index gained 0.5 percent to 517 points, while the DAX 40 index in Germany rose 0.5 percent to 18,710 points.
The FTSE 100 index in the UK gained 0.7 percent to 8,339 points, the MIB 30 index in Italy increased 0.5 percent to 33,751 points, the CAC 40 index in France increased 0.5 percent to 7,484 points and the IBEX 35 index in Spain gained 0.8 percent to 11,4678 points.
Global markets are following a mixed course ahead of tomorrow’s monetary policy decisions by the US Federal Reserve (Fed).
Uncertainties about the magnitude of the steps the Fed will take in the upcoming period continue to make it difficult for markets to find direction.
Analysts noted that the expectation of a 50 basis point interest rate cut continues to gain strength in pricing in money markets, and reported that there is a 70 percent probability that the Fed will cut interest rates by 50 basis points tomorrow.
European stock markets were mixed yesterday, while concerns about economic activity across the region continue to exist.
European Central Bank (ECB) Vice President Luis de Guindos said yesterday that projections show that inflation will hover around the 2 percent target by the end of 2025, adding, “We want to keep all options open regarding interest rate decisions, we expect inflation to fall in September, but there may be a resurgence in the fourth quarter.”
ECB member Peter Kazimir also said yesterday that there was no need to rush to cut interest rates and that it was safest to wait for the outlook to become clearer, adding, “A significant change in the outlook is necessary for the ECB to cut interest rates in October.”
ECB Chief Economist Philip Lane emphasized that the data on wages and profits were in line with expectations and said, “If the data are in line with our basic scenario, a gradual exit from monetary tightening would be appropriate.”
Today, the Zew economic confidence index in the Eurozone and Germany, as well as retail sales, industrial production and capacity utilization rate data in the US will be followed.
