Prime Highlights:
- European stocks are expected to open higher, driven by positive investor sentiment in Asia-Pacific markets.
- Investors are focusing on U.S. consumer inflation data and JPMorgan earnings, alongside geopolitical developments in Iran.
Key Facts:
- President Trump warned that countries doing business with Iran could face a 25% U.S. tariff.
- The U.S. December consumer price index is expected to show a 2.7% rise, signaling ongoing inflation trends.
Background:
European stock markets are set to open broadly higher on Tuesday as investors weigh a mix of geopolitical developments and economic data. According to market sources, Germany’s DAX and France’s CAC 40 are expected to rise by around 0.2%, while Italy’s FTSE MIB could open 0.14% higher. The U.K.’s FTSE index is likely to start the day largely flat.
Markets began the week on a positive note, despite heightened attention on global events. In particular, developments in Iran continue to draw investor focus following widespread protests and a strong government crackdown. The situation has added a degree of caution to trading sentiment, especially as U.S. policymakers consider their response.
Another factor influencing markets is the criminal investigation launched into U.S. Federal Reserve Chair Jerome Powell. Powell described the probe as an attempt by former President Donald Trump to sway central bank policy and reaffirmed that he would not be influenced by political pressures. His current term as Fed chair is scheduled to end in May.
President Trump said countries doing business with Iran could face a 25% tariff from the U.S., raising concerns in the markets.
Investors are also keeping an eye on U.S. data and bank results. JPMorgan Chase will report its earnings on Tuesday, and the December consumer price index is expected to show a 2.7% rise, showing ongoing inflation.
Overnight, Asia-Pacific markets rose, suggesting positive momentum may continue in Europe. Meanwhile, U.S. stock futures were slightly lower. In Europe, no major earnings or economic reports are scheduled today, so markets will largely react to international developments and investor sentiment.
