European Shares Likely To Open Higher Ahead Of US CPI Data

(RTTNews) - European stocks may open higher on Tuesday as investors await the all-important U.S. CPI data later in the day to gauge when the Fed will begin cutting rates.

Economists expect consumer prices to climb by 0.4 percent in February after rising by 0.3 percent in January.

The annual rate of consumer price growth is expected to come in unchanged from the previous month at 3.1 percent, while annual core consumer price growth, which excludes food and energy prices, is likely to slow to 3.7 percent from 3.9 percent.

The Fed is widely expected to leave rates unchanged at its monetary policy meeting next week, but today's CPI report along with other reports due this week, including data on producer price inflation, retail sales, industrial production and consumer sentiment could impact expectations regarding when the central bank will eventually lower rates.

The labor market data from the U.K. and final consumer price figures from Germany are due later in the day, headlining a light day for the European economic news.

Asian markets traded mixed, with Hong Kong's Hang Seng index climbing to its highest level in 2024 on hopes that several companies could launch share buy-backs to take advantage of the current market valuations.

Japanese stocks continued to fall on rising expectations that the Bank of Japan may end its negative interest rate policy as early as next week.

Bank of Japan Governor Kazuo Ueda said earlier today that the economy is recovering but also showing some signs of weakness, putting yen under pressure.

The dollar held steady in Asian trading while gold eased slightly after nine consecutive sessions of gains. Oil ticked higher ahead of monthly reports from OPEC and the IEA due this week.

U.S. stocks ended lower for a second straight session overnight as Treasury yields edged up ahead of key inflation data release.

The Dow edged up 0.1 percent, while the S&P 500 slid 0.1 percent and the tech-heavy Nasdaq Composite gave up 0.4 percent.

European stocks fell for the first time in three days on Monday due to uncertainty about the outlook for interest rates. The pan European STOXX 600 declined 0.4 percent.

France's CAC 40 slipped 0.1 percent and the German DAX dipped 0.4 percent while the U.K.'s FTSE 100 inched up 0.1 percent.