Stock market: The calm before the storm? European indices facing the uncertainty of FED decisions

European stock markets are expected to take a break on Tuesday, after a week of consecutive gains. Stock market investors are impatiently awaiting the publication of the minutes of the last meeting scheduled for Wednesday.

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Consolidation expected for the European stock market

According to the first indications from the stock market, European indices should decline slightly this Tuesday.

• The Parisian CAC 40 stock market index should lose 0.32% at the opening
• The Dax stock index in Frankfurt could fall by 0.25%.
• The FTSE 100 in London is expected to drop 0.54%.
• The EuroStoxx 50 index is expected to fall by 0.28%.

This consolidation on the stock market is expected after recent market gains stimulated by expectations of interest rate cuts by the FED.

Stock market: cautious signals from the FED

However, several FOMC members stressed Monday that the persistence of inflation should prompt the central bank to be cautious. The “minutes” of the FED meeting, published Wednesday at 6:00 p.m. GMT, should provide new clues about the extent of the debates within the American central bank. These can impact the stock market in general.

The stock market anticipates Currently two key rate cuts in the United States :

• the first in September,
• the second in November or December.

The publication of the minutes of the FED meeting could, however, modify these expectations.

Other indicators to watch for stock market investors

In addition to the FED minutes, stock market investors will also closely follow monthly producer prices in Germany published this Tuesday. These data could give an indication of inflation dynamics in the eurozone.

In Asia, the markets were also cautious on Tuesday:

• The Nikkei index in Tokyo fell 0.07%
• The MSCI index lost 0.6%.
• The Shanghai SSE Composite and CSI 300 stock indices fell 0.46% and 0.45%, respectively.

This week, stock market investors therefore have every interest in following the news closely.