Peter Nurse 

Investing.com: European stock markets will open higher on Tuesday as investors wait for more corporate earnings, and the possibility of central banks tightening their monetary policies.

The contract in Germany was 0.6% lower at 2AM ET (0600 GMT). In France, it rose 0.6% and in the U.K, 0.6%.

European equity markets are trying to shake off a weak showing in April, with the major indices weighed by concerns about economic growth slowing, rising inflation, and Russia’s ongoing war in Ukraine.

As central banks hold meetings to set policy, this week will see a lot more attention than usual. This could have a significant impact on market sentiment in the weeks ahead.

On Tuesday, the The raised its main cash rate to 0.35% by 25 basis point, marking its first rise in over 10 years. It also began withdrawing its extraordinary financial support.

Two-day session of the Fed will begin Tuesday. It is likely to increase rates by half a point when it issues its policy decision Wednesday. As it tightens monetary policy, the Fed increased its policy interest rate 25 basis points in March. It is likely that asset trimming will soon begin.

On Thursday, the Federal Reserve will announce its policy decision and it is likely to increase interest rates to the highest levels in thirteen years.

In the corporate sector, HSBC (LON:) is likely to be in focus after its largest shareholder, Chinese insurance giant Ping An (OTC:), called for a break-up of the U.K.-headquartered bank, one of Europe’s largest.

Logitech (NASDAQ 🙂 has reported a 20% decrease in its fourth quarter sales. Additionally, the computer hardware maker reduced its 2023 fiscal outlook. This was to remove the estimation of the annual sales and profits in Russia and Ukraine.

For April, the release for March is due earlier in the session.

Oil prices edged lower Tuesday but remained elevated as the European Union is expected to firm up plans to tighten sanctions on Russia this week, potentially agreeing an embargo on Moscow’s oil.

There has been disagreement within the bloc over whether to take this next step, but expectations are rising with Germany, the union’s largest economy and de facto leader, saying it was prepared to back an immediate embargo. Hungary and Slovakia could get exceptions from a deal, as they are both dependent heavily on Russian oil imports.

The U.S. inventory data data for April 29, 2009 from the industry group will be available later in the session as a precursor to government data on Wednesday.

The futures fell 0.3% at $104.95/barrel by 02:01 ET. Contracts dropped 0.3% to $107.30 

The price fell 0.1% to $1860.99/oz and traded 0.1% lower at 1.0507.