by Claude Chendjou
PARIS (Reuters) – The main European stock markets are expected to show timid variations on Tuesday after a third session in a row in the green linked in particular to signs of easing of trade tensions between China and the United States which have stimulated appetite for risk.
The flurry of corporate results on Tuesday and the start of the US Federal Reserve’s monetary policy meeting should give rise to some caution.
According to the first available indications, the Parisian CAC 40 should lose 0.22% at the opening. The Dax in Frankfurt could fall by 0.23%, while the FTSE 100 in London should gain 0.04%. The EuroStoxx 50 index is expected to fall by 0.24% and the Stoxx 600 down by 0.19%.
Investors have flocked to risky assets in recent days as US President Donald Trump, on a tour of Asia, expressed confidence in reaching an agreement with his Chinese counterpart Xi Jinping, whom he is due to meet on Thursday.
An agreement between the two leading world powers would make it possible to suspend the high customs duties that they intend to impose on themselves and Beijing’s controls on exports of rare earths.
“Donald Trump’s Asia tour takes center stage this week, with global markets focused on his highly anticipated meeting with Chinese President Xi Jinping on Thursday,” Chris Weston, research director at Pepperstone, said in a note.
“Markets have largely seen this outcome as the most likely, so the news will not come as a major surprise and is partly priced in,” he added.
On the corporate side, among the series of today’s results, the market will focus in Europe on Amundi
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