European stock markets posted small gains against other currencies on Tuesday and the dollar strengthened as investors awaited comments from the Federal Reserve chair on the outlook for US interest rates.
Europe’s benchmark Stoxx 600 index rose 0.2 percent in early trade and the FTSE 100 advanced 0.4 percent ahead of a public appearance by Federal Reserve Chairman Jay Powell at 5 p.m. London time, where he was expected to address the implications of last week’s blockbuster US jobs. hopefully. Report.
The figure was stronger than investors had expected, raising market concerns that it could lead to a higher peak in US interest rates. US government bonds and equities have sold off since the data was released.
Indicating investor uncertainty, the DAX slipped 0.1 percent in Germany and US futures tracking the S&P 500 were also soft, down 0.1 percent on Tuesday. The greenback rose 0.1 percent against a basket of six other currencies, while the yield on the benchmark US 10-year Treasury was flat.
“All eyes will be on Fed Chair Powell’s interview today at the Economic Club of Washington, DC. , , Clearly any implication that there is an upside risk to the Fed’s rate outlook will validate market pricing changes over the past few days,” analysts at Deutsche Bank said in a note.
German industrial production fell 3.1 percent, against expectations for a contraction of 0.7 percent. Taking into account the revision of October figures, output is now 5.5 percent below its level just before Russia’s invasion of Ukraine last February, according to Capital Economics.
“December’s decline may be an early sign that German industry is finally bearing the full force of the energy crisis,” the research company said.
Meanwhile, Asian shares edged higher with the Chinese CSI 300 rising 0.2 per cent. Hong Kong’s Hang Seng index closed up 0.4 percent.
