European stocks look set to open on subdued note Wednesday as investors look towards central bank meetings for directional cues.
The Federal Reserve is expected to raise its benchmark rate by 25 basis points when it ends a two-day policy meeting later in the day.
The language in the policy statement along with an updated set of economic forecasts from Fed officials, covering GDP, inflation and unemployment may shed light on how many additional rate hikes might come out of the U.S. this year.
On Thursday, the European Central Bank may signal that it is getting closer to winding down its QE program.
The Bank of Japan is expected to make no changes to its monetary policy settings when it ends a two-day review on Friday.
Asian stocks remain broadly lower ahead of the Fed’s interest-rate decision while the dollar rose against the euro and yen. Gold held flat while oil prices dipped on API data showing a surprise build of 833,000 barrels in U.S. crude stockpiles.
Overnight, U.S. stocks ended mixed as the Trump-Kim summit failed to impress investors and focus turned to central bank meetings.
A gauge of U.S. inflation accelerated in May to the fastest pace in more than six years, reinforcing the Federal Reserve’s outlook for gradual interest-rate hikes.
The Dow Jones Industrial Average slid marginally, while the S&P 500 rose 0.2 percent and the tech-heavy Nasdaq Composite added 0.6 percent to reach a fresh record closing high.
European markets finished Tuesday’s session slightly lower as the historic agreement between the U.S. and North Korea fell short on some key details and IMF Managing Director Christine Lagarde voiced criticism for Trump’s trade policy.
The pan-European Stoxx Europe 600 closed 0.1 percent lower. The German DAX finished marginally lower, while France’s CAC 40 index and the