LONDON — European markets are set to open mostly higher on Tuesday, clawing back Monday’s losses, as investors monitor key monetary policy decisions around the world.
It comes after U.S. markets staged a major reversal to start the month on Monday, with the Nasdaq Composite rising 1.63% late in the day, after falling 1.07% earlier, and the S&P 500 increasing 0.57% despite hitting a new year-low in the session.
Britain’s FTSE 100 is expected to open around 56 points lower Tuesday, at 7,489, having been closed on Monday for a public holiday. Germany’s DAX is seen around 113 points higher at 14,052 and France’s CAC 40 is set to gain around 42 points to 6,468.
European markets closed sharply lower a day earlier as investors digested weak economic data out of China and Germany, and a sudden “flash crash” in Sweden’s OMX 30 index.
Focus will turn this week to monetary policy decisions from major central banks, with the U.S. Federal Reserve expected to announce a half-percentage point increase to its benchmark interest rate on Wednesday. Market fears have been mounting as to how aggressive policymakers will have to be in order to rein in inflation.
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— CNBC’s Sarah Min contributed to this report.