European equities traded cautiously on Tuesday as investors awaited the Federal Reserve’s policy meeting and digested important regional economic data. At 07:05 GMT, Germany’s DAX fell 0.1%, France’s CAC 40 slipped 0.2%, and the UK’s FTSE 100 declined 0.1%.
The Fed begins its latest two-day policy session later in the day, with markets anticipating a potential interest rate cut when the meeting concludes on Wednesday, which could provide support to global markets. Meanwhile, the Bank of England meets later this week but is widely expected to maintain rates on Thursday, after cutting them last month for the fifth time in just over a year.
UK inflation rose to 3.8% in July, the highest among G7 economies and nearly double the Bank of England’s medium-term target. However, employment data released earlier showed a seventh consecutive month of job declines and slowing wage growth, which may ease concerns about persistent inflation pressures. Additional eurozone data due Tuesday includes Italian inflation, German ZEW economic sentiment, and eurozone industrial production.
Investor sentiment was further supported by progress in US-China trade talks in Madrid. Treasury Secretary Scott Bessent confirmed a framework deal on TikTok’s US ownership, with China dropping demands for tariff concessions and the US securing commitments on national security concerns. A conversation between President Donald Trump and President Xi Jinping is expected later this week to finalize details. However, uncertainty remains after Chinese regulators said a preliminary probe found Nvidia had breached anti-monopoly rules.
In corporate news, Anglo American (LSE:AAL) and Codelco finalized an agreement to jointly operate their neighbouring copper mines in Chile, expected to unlock at least $5 billion in value. Jersey-based professional services firm JTC (LSE:JTC) reported first-half profit fell over 60%, as acquisition costs and share-based payments offset revenue gains. UK construction group Kier Group (LSE:KIE) posted stronger-than-expected annual results, reporting a record order book, higher dividends, and a share buyback program.
Oil prices eased slightly, pausing after recent gains amid concerns over potential supply disruptions. At 03:05 ET, Brent crude fell 0.2% to $67.28 per barrel, and West Texas Intermediate fell 0.1% to $63.25 per barrel. Both contracts have risen 1–2% over the past week as Ukraine intensified attacks on Russian oil facilities in response to inconclusive US-brokered peace talks, aiming to limit Moscow’s ability to fund its war efforts.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply