Peter Nurse 

Investing.com – European stock markets are expected to open with small losses Tuesday, handing back some of the previous session’s gains ahead of the start of an eagerly-awaited Federal Reserve meeting.

The contract in Germany was trading 0.2% lower at 2AM ET (0700 GMT). In France, the contract dropped 0.1% while in the U.K. it fell 0.2%.

Investors around the world are focusing on the start of the Fed’s two-day later Tuesday, with the central bank widely expected to start winding down its $120 million monthly bond-buying program. 

Given that inflation has reached a 30 year high, the Fed will need to revise its views on rising prices and when it will raise interest rates. The Fed’s statements on the subject will play a significant role in determining risk appetite over the next few weeks.

Investors should pay attention to a variety of earnings reports, including the positive third quarter season, which has helped main European indices gain just under 1 percent on Monday.

U.K.-based bank Standard Chartered (OTC:) posted a stronger-than-expected pretax profit for the third quarter, aided by lower credit charges and growth in trade finance, while Swiss staffing company Adecco (SIX 🙂 The continued rise in African hiring will lead to modest revenue growth for the fourth quarter.

Earnings are available from energy giant BP, Fresenius (DE) and DSM (AS) in the Netherlands. Elsewhere, shipping giant AP Moeller – Maersk  (CSE:) said it will increase its existing buyback program by $5 billion, expecting exceptionally high shipping rates to stay strong through the first quarter of next year at least. 

Investors will be following the ongoing COP26 conference, which is taking place in Glasgow. It’s a U.N conference aimed to reduce the impact of climate change. With one hundred countries having committed themselves to nine years of stopping and reversed deforestation, backed with a $19 trillion fund, investors will also be closely following the conference.

Economic news: Tuesday’s main release will be for the month of October.  

Crude prices rose slightly Tuesday, with the preliminary October production data of the largest producers showing that global supply remains tight.

Later this week, the Organization of the Petroleum Exporting Countries will meet with its allies to discuss the production levels.

A Reuters survey found that the group produced 190,000 more barrels per day in the last month than they were allowed to under the current agreement. This is below the 254,000 b/d they would have been able to increase output. 

At 4:30PM ET, the company will release updated oil supply data.

U.S. crude oil futures were 0.3% lower at $84.28 per barrel by 2AM ET. Contracts rose 0.5% to $85.11. 

Additionally, they remained relatively unchanged at $1.795.80/oz, while the traded price edged higher to 1.1608.