European stocks, investors await comment from Fed’s Powell
LONDON — European stocks climbed on Tuesday as investors look ahead to the next U.S. inflation reading on Wednesday and monitor comments from the U.S. Federal Reserve.
The pan-European Stoxx 600 gained 0.8% in early trade, partly recouping the 1.3% decline by Monday’s close. Tech stocks added 2.1% to lead gains as most sectors and major bourses entered positive territory. Autos bucked the upward trend to fall 0.4%.
In terms of individual share price movement, Swedish cloud computing firm Sinch added 7.2% in early trade after Goldman Sachs initiated coverage of the company’s stock with a “buy” rating.
At the bottom of the European blue chip index, TechnipFMC fell 4.4% after announcing the sale of 9 million shares of Technip Energies through private transactions.
Global markets are focused on the latest U.S. inflation data due out this week; the U.S. consumer price index is set for release Wednesday and the producer price index is slated for Thursday.
Consumer prices in Europe and the U.S. jumped in recent months. Last Friday, figures showed that inflation in the euro zone hit a new record high in December and came in at 5% compared with the same month the previous year.
Asia-Pacific markets were mixed across the board on Tuesday as investors remain concerned about inflation, as well as likely policy tightening from central banks like the U.S. Federal Reserve.
Global investors will be looking for any clues from Fed officials as to the timing of interest rate hikes too; Federal Reserve Chairman Jerome Powell’s confirmation hearing will take place on Tuesday. Kansas City Fed President Esther George is also scheduled to speak about on economic policy, as is St. Louis Fed president James Bullard later in the day.
U.S. futures were flat in early premarket trade after the major averages extended declines on Monday, except the Nasdaq, which managed to snap a four-day losing streak.
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— CNBC’s Tanaya Macheel contributed to this market report.