European Stock Futures Edge Lower; Ukraine, Powell’s Speech in Focus -Breaking
Investing.com. European stock market prices are likely to open marginally lower Tuesday. Investors will be monitoring U.S. policy development and the Ukraine war.
The contract in Germany was trading 0.1% lower at 3AM ET (0700 GMT), while the French contract dropped 0.4%, and that in the United Kingdom fell 0.1%.
Russian troops continue their bombardment against several cities in Ukraine. The southern port of Mariupol has been a focus point, while the attacks on Kharkiv have also intensified.
While diplomatic efforts to reach an agreement with Russia have failed so far, President Joe Biden warned that Russia may use chemical weapons. He also said that President Vladimir Putin was “back against the wall”.
Biden is set to arrive in Brussels on Thursday for summits with members of NATO as well as the European Union governments, to discuss their response to Russia’s aggression.
Elsewhere, investors will also digest Monday’s hawkish comments from Federal Reserve Chairman in the wake of last week’s interest rate hike of 25 basis points, the likely start of a sustained tightening cycle.
Powell stated that the central bank should move quickly to increase rates, and perhaps more aggressively to prevent inflation becoming entrenched. Goldman Sachs, an influential investment bank, now anticipates that the Fed will raise interest rates 50 basis points during its June and May meetings.
Christine Lagarde of the European Central Bank stated on Monday that both the top two central banks in the world will be moving out of line in the future because the effects of war in Ukraine on their economies will differ.
The Tuesday release of important economic data is expected to be minimal, but corporate news Finland will have some. Nokian Renkaat (HE:) stated that it decided to keep production going in Russia, to maintain control over its factory.
Oil prices extended recent gains as the foreign ministers of European Union governments discussed joining the United States in sanctioning Russian oil in return for Moscow’s invasion of Ukraine.
Marketjitters were also caused by the attack on Saudi Arabia’s oil facilities last weekend by Iranian-aligned Houthis.
Futures were trading 2.6% higher at $112.78 per barrel by 3:00 AM ET. The contract was up 2.8% to $118.81. On Monday, both contracts settled higher than 7%.
U.S. crude-oil supply data for the will be available later in today.
The price of gold rose 0.4% to $1936.40/oz while it traded 0.4% lower at 1.0969
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