stocks, news, data and earnings

LONDON — European stocks opened cautiously higher Tuesday, with market uncertainty lingering over the outlook for interest rate cuts.

The pan-European Stoxx 600 index was up 0.07% in early deals, with sectors and major bourses trading in mixed territory. Tech stocks added 0.58%, while oil and gas fell 0.59%.

Shares of Danish biotech company Zealand Pharma rose 4%, recovering losses from the previous session after CEO Adam Steensberg told Reuters last week that the company was looking for a big pharma partner to help bring its weight loss drug to market.

Global markets will be focused on key Federal Reserve events this week. Minutes from the central bank’s most recent meeting will be released Wednesday, before Fed Chair Jerome Powell’s Jackson Hole, Wyoming, speech on Friday.

Both events could give investors more clarity on the outlook for interest rate cuts and what to expect at the Fed’s next meeting. Fed futures funds pricing indicates a roughly 76% likelihood of central bank policymakers lowering rates by 25 basis points in September, per the CME FedWatch Tool.

Asia-Pacific markets were mostly up on Tuesday, tracking the Wall Street rally Monday, while investors also assessed minutes of the Reserve Bank of Australia’s latest meeting. U.S. stock futures were flat last night after the S&P 500 and the Nasdaq Composite notched their longest winning streaks of 2024. 

Data releases in Europe Tuesday include Germany’s producer price index, the latest monetary policy decision from Sweden’s central bank and the EU’s final year-on-year inflation rate.