European stock markets are expected to open slightly lower on Tuesday due to ongoing concerns about interest rates and the unexpected death of Iranian President Ebrahim Raisi in a helicopter crash, which has caused uncertainty regarding oil supplies.
Investors are also anticipating the release of the minutes from the Federal Reserve's latest policy meeting, comments from Fed officials, and an earnings report from artificial intelligence leader Nvidia for further market direction.
On Monday, Fed Vice Chair Philip Jefferson remarked that predicting the permanence of the inflation slowdown remains challenging. Fed Vice Chair Michael Barr noted in a speech that the institution's restrictive policies need more time to take full effect. Meanwhile, Atlanta Fed President Raphael Bostic indicated that prices are likely to decrease at a slower rate than many had anticipated.
Asian markets took a breather following seven consecutive days of gains. Gold prices slipped from record highs as the dollar appreciated slightly against other major currencies.
The oil market is showing signs of weakness, despite a rise in geopolitical tensions ahead of an OPEC+ meeting on supply levels.
In the U.S., stock markets closed mixed on Monday as Treasury yields increased following hawkish statements from Federal Reserve officials. The Nasdaq Composite, heavily weighted towards tech stocks, rose by 0.7%, hitting a record high in anticipation of Nvidia's upcoming earnings report. The S&P 500 finished marginally higher, while the Dow Jones Industrial Average dipped by 0.5% after closing above 40,000 on Friday.
On Monday, European stocks closed higher driven by a surge in commodity prices amid heightened geopolitical tensions and optimism regarding the Chinese economic recovery. The pan-European STOXX 600 index increased by 0.2%. Germany's DAX and France's CAC 40 both rose by 0.4%, while the UK's FTSE 100 ended flat with a slight positive tilt.
