European markets are heading for a negative open Tuesday as global investors look ahead to the start of the U.S. Federal Reserve’s two-day policy meeting.
Recent inflation reports could prompt the central bank to signal that interest rates will remain higher for longer than expected. Fed funds futures currently forecast a 99% likelihood that the Fed will leave benchmark interest rates unchanged this week, according to the CME FedWatch Tool.
Meanwhile, it’s been a dramatic night for Asia-Pacific markets after investors assessed the latest central bank monetary policy decisions from the Bank of Japan and the Reserve Bank of Australia.
The BOJ officially ended its negative interest rate policy at its March meeting, hiking interest rates for the first time in 17 years and raising its benchmark interest rate from -0.1% to a range of 0% to 0.1%. The bank also abolished its yield curve control policy, marking a historic shift in policy. Asia-Pacific markets largely fell Tuesday following the move.
CNBC Pro: Worried about lofty valuations? Berenberg names 5 ‘top pick’ stocks in a ‘cheap’ sector
As concerns swirl about lofty stock market valuations and investors focus on AI companies, strategists at Berenberg see one sector as a relative bargain.
The investment bank pointed out that investors in that one sector outperformed the market by an average of 108% – or more than doubled their money – when they invested on three occasions in the past when valuations were similarly depressed as the current levels.
CNBC Pro subscribers can read more here.
— Ganesh Rao
CNBC Pro: Fund manager says this software stock is set to be a ‘serious player’ in AI, gives it nearly 50% upside
One stock is a “promising AI investment” and set to be a “serious player” in a corner of the space, according to Brian Stutland of Equity Armor Investments.
“They are really starting to become very creative in the AI world,” Stutland, a portfolio manager at the firm, told CNBC’s “Street Signs Asia” this week.
CNBC Pro subscribers can read more here.
— Weizhen Tan
European markets: Here are the opening calls
European markets are set to open lower Tuesday.
The U.K.’s FTSE 100 index is expected to open 26 points lower at 7,698, Germany’s DAX down 41 points at 17,896, France’s CAC 13 points lower at 8,138 and Italy’s FTSE MIB down 68 points at 33,347, according to data from IG.
There are no major earnings releases Monday. Germany’s ZEW survey of economic sentiment for March is set to be published.
— Holly Ellyatt
