European stocks were little changed on Tuesday, with equities lacking catalysts to push shares decisively higher in either direction.
Investors are looking ahead to highly anticipated comments from the U.S. Federal Reserve, which could provide insight into what monetary policy will look like over the coming months.
Where are the major benchmarks trading?The Stoxx Europe 600 Index SXXP, +0.13% rose less than 0.1% to 383.22, as it dipped between positive and negative territory in early trading. The index ended 0.6% higher on Monday, in a modest rebound from recent losses, including a 1.2% drop over the course of last week, which was its third straight weekly decline.
Germany’s DAX DAX, +0.30% rose 0.2% to 12,360. On Monday, the index rose 1% in its biggest single-day percentage gain since July 26, after its third straight down week, its longest such stretch since February.
France’s CAC 40 PX1, +0.26% fell less than 0.1% to 5,377 while the U.K.’s FTSE 100 UKX, -0.01% was unchanged at 7,591.5.
The euro EURUSD, +0.2787% extended its recent advance against the dollar, changing hands at $1.1521, compared with $1.1484 late Monday in New York. The U.S. dollar index DXY, -0.16% is down for a fifth straight session, its longest such streak since the start of the year. Thus far this year, however, the euro is down more than 4% against the greenback.
What’s driving the market?Investors are turning their attention to upcoming news from the Federal Reserve. The minutes from the central bank’s latest meeting will be released on Wednesday, and on Friday, Fed Chairman Jerome Powell will give a speech at the Fed’s annual summer retreat in Jackson Hole.
Both the minutes and the speech will be scoured for any insight into what the Fed sees as potential problem spots for the economy as well as for any clues into the Fed’s policy plans on interest rates. In particular, market participants will be looking to hear Powell’s thoughts on trade policy and whether the currency crisis in Turkey could spread to other emerging markets or regions.
Don’t miss: Here’s how Jackson Hole could impact the dollar, bonds and emerging markets
Separately, investors are continuing to monitor trade relations between the U.S. and its major trading partners, with talks between the U.S. and China set to resume on Wednesday. While market participants are optimistic that progress could be made in the talks — potentially avoiding a potential trade war, which most analysts said would be a massive headwind for global economic growth — few expect the issue to be resolved.
On Monday, President Donald Trump told Reuters that he has “no time frame” for ending the trade dispute, and that he didn’t “expect much” from the talks. His administration is also moving forward with tariffs that cover $200 billion in Chinese goods, including some that are to take effect on Thursday.
U.K.’s top diplomat was expected to deliver a speech in Washington on Tuesday calling for fresh sanctions against Russia, urging a continued hard line, according to prepared remarks released by the embassy.
What are market analysts saying?“European markets have opened rather mixed this morning after yesterday’s positive session though it should also be acknowledged they have underperformed in recent weeks, and are still close to three month lows,” wrote Michael Hewson, chief market analyst at CMC Markets UK in a morning note.
What stocks are in focus?BHP Billiton PLC BLT, -1.76% fell 1.9% after it reported its quarterly results, where earning were pressured by $5.2 billion in impairment charges.
Bayer AG BAYN, +0.86% rose 1.5%, extending a rally it posted in Monday’s session. The pharmaceutical giant is up more than 4.6% thus far this week, a rally that follows massive losses last week, after a litigation loss by Bayer-owned Monsanto in California over whether its herbicide Round-up is carcinogenic.
Aggreko PLC AGK, +5.03% gained 5.6% and was the top percentage gainer among European stocks.
Polymetal International PLC POLY, +0.15% reported earnings and sales that rose from the prior year. It also boosted its dividend by 21%. Shares rose 0.7%.
Persimmon PLC PSN, +1.23% reported earnings that rose 13%, and it set out plans for the return of surplus capital over the next three years. The stock dipped 0.3%.
John Wood Group PLC WG., +4.32% swung to a pretax loss in the first half of the year, though revenue more than doubled. Shares gained 4.2%.
On the downside, Indivior PLC INDV, -2.58% fell 2.6% in early trading.
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