Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

European Stocks Seen Opening Higher, Dollar Weak

07/26/2013 | 02:56am US/Eastern

Europe's financial markets are opening with the dollar weaker but shares expected to start strongly after a recovery in New York stocks prompted by an article in The Wall Street Journal reporting that the Federal Open Market Committee, at its meeting next week, is likely to discuss whether to refine or revise its "forward guidance," the words used to describe its intentions for the next few years.

"The Federal Reserve is on track to keep its $85 billion-a-month bond-buying program in place at its policy meeting next week, but officials will debate changes to the way the central bank describes its plans for the program and for short-term interest rates," wrote Jon Hilsenrath in the Journal.

However, Europe's markets are likely to tread cautiously ahead of an exceptionally busy week for central bank policy meetings and economic data.

"The U.S. employment report, U.S. GDP and monetary policy decisions by the Fed, European Central Bank, Bank of England and Reserve Bank of India will be on top of the agenda," wrote researchers at ABN Amro in a note to clients.

"In the case of stronger-than-expected U.S. data, the Fed will likely further communicate to financial markets that interest rates will not be raised in the foreseeable future in an attempt to avoid U.S. bond yields moving much higher," they added.

Ahead of the stock markets' opening, Capital Spreads is calling the FTSE 100 up 26 at 6614, the DAX up 54 at 8353 and the CAC-40 up 28 at 3984. In the currency markets, the dollar is mostly weaker than in late New York business Thursday. German Bund futures have opened higher but crude oil futures are lower and the gold price is steady.

"Despite the positive start [for stocks] though, gains may be capped and traders may tread cautiously going into the weekend as they look ahead to next week, which sees a raft of key central bank meetings, speeches and releases and a host of sentiment-deciding economic data," wrote Jonathan Sudaria, a dealer at Capital Spreads, in a client note.

This session, economic data releases include French consumer confidence and the final reading of the University of Michigan's measure of consumer confidence in the U.S.

Write to Martin Essex at martin.essex@dowjones.com or on Twitter @MartinEssexDJN

React to this article
Latest news
Date Title
03:41a INVESTEC : *ubs raises investec price target to 746 (688) pence - 'buy'
03:40a AstraZeneca hit after psoriasis drug linked to suicide fears
03:39a PUBLISHING TECHNOLOGY : Proposes Equity Raise As It Swings To Loss (ALLISS)
03:36a COSTCO WHOLESALE : Bartell's new private label focuses on local products
03:36a TERRA NOVA ENERGY : Completes Private Placement Of Units For US$0.45 Million
03:35a TRANSCONTAINER PAO : Notice of Availability of Materials for the Annual General Meeting of Shareholders
03:35a INTERQUEST : Iq weekly news round-up
03:35a CROMWELL : Appoints Head of Property
03:35a SCOTGOLD RESOURCES : Cononish gold project study update
03:35a MINISTRY OF FINANCE OF REPUBLIC OF INDONESIA : S and P Revises Indonesia’s Rating Outlook from Stable to Positive
Latest news
Advertisement
Hot News 
ATLANTIC COAL : Gets 37% Increase In Stockton Reserves In Pennsylvania
INVESCO INCOME GROWTH : Change of Adviser
EDEN RESEARCH : EU Product Authorisations
British-based banks planning for EU 'no' stymied by lack of European office space
PARTNERS : embarks on GBP 200 million office development in the City of London
Most Read News
05/25 BARAKAH OFFSHORE PETROLEUM BHD : PBJV secures Shell jobs
01:43a ROYAL DUTCH SHELL A : PRESS: Decades Before Shell's Arctic Production Comes On Stream - FT
05/25 WEIBO : Singer suspends Weibo updates to end cyber bullying
05/25DJCHINA CONSTRUCTION BANK : Named Yuan-Clearing Bank in Chile
05/25 AUSTRALIA AND NEW ZEALAND BANKING : ANZ and ETF Securities launch joint venture with six ASX listed exchange traded funds
Most recommended articles
03:40a AstraZeneca hit after psoriasis drug linked to suicide fears
03:25aDJFord's Turkish Joint-Venture Hit by Labor Dispute
03:23a China-led lender adds urgency to Japan's pursuit of pan-Pacific trade pact
03:22a Irish cabinet begins talks on Aer Lingus sale
03:15a WARREN BUFFETT : Ifr