European stock markets were quiet on Tuesday morning, with attention focused on the last meeting of the United States Federal Reserve taking place in Washington, DC.
The Fed begins a two-day private policy meeting on Tuesday. President Jerome Powell will issue a statement on policy decisions and the outlook for the American economy on Wednesday.
“Traders are a little hesitant to make bigger bets as the Fed begins its two-day meeting today,” said Naeem Aslam, chief market analyst at Avatrade. “The hope is that the Fed will continue its fight against the coronavirus through its monetary policy.
“The recovery of the shares depends on the result of the Federal Reserve meeting. Policymakers in Washington have yet to deliver another stimulus package, and it seems likely that it will take even longer. Now, there is more pressure on the Federal Reserve to support the stock market. “
The European stock markets had a mixed opening.
The FTSE 100 (^ FTSE) rose 0.1%, the CAC 40 (^ FCHI) fell 0.3%, and the DAX (^ GDAXI) rose 0.3%. After falling more than 1% on Monday amid quarantine concerns, Spain’s IBEX 35 (^ IBEX) was up 0.2% at the open.
Wall Street futures changed little. S&P 500 (ES = F) and Dow Jones (YM = F) futures were unchanged, while Nasdaq futures (NQ = F) were up 0.2%.
Shares were mixed overnight in Asia. Japan’s Nikkei (^ N225) fell 0.2% and Australia’s ASX 200 (^ AXJO) fell 0.3%, but Chinese markets posted gains. Hong Kong’s Hang Seng (^ HSI) was up 0.4%, Shanghai Composite (000001.SS) was up 0.7%, and Shenzen Component (399001.SZ) was up 1.2%.
Gold’s recovery halted after prices hit new record highs on Monday. Gold was stable at $ 1932.80 (GC = F) per ounce. Silver (SI = F) slipped higher, 0.4% to $ 24.61 per ounce.
The pause for gold came as the fall in the dollar moderated. The dollar has been under pressure for the past month as COVID-19 cases skyrocketed in the US, raising fears about side effects for the economy.
The dollar was up 0.1% against the euro (EUR = X) at € 0.8525 and up 0.1% against the pound (GBP = X) at £ 0.7771.
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