European stocks are likely to open lower on Tuesday as investors express concerns over Federal Reserve independence and await Nvidia’s earnings on Wednesday for clues about the strength of the AI sector.
Asian markets retreated after U.S. President Donald Trump announced on social media that he is removing Lisa Cook from the Fed’s board of directors, marking the latest challenge to the central bank’s autonomy. Trump claimed there was sufficient evidence that Cook had provided false information on mortgage applications.
The U.S. dollar and Treasury yields slipped ahead of key economic reports due later today, including durable goods orders and consumer confidence data. Additionally, the Case-Shiller Home Price Index and the Richmond Fed Manufacturing Index will be released. Richmond Fed President Thomas Barkin is also scheduled to address the Montgomery County Chamber of Commerce.
Markets are looking ahead to Friday when the Fed’s preferred inflation gauges will be published. Analysts expect July inflation to remain uncomfortably high.
In Europe, the economic calendar is relatively quiet, with only French consumer sentiment data due later in the day, projected to rise to 90 in August from 89 in July.
Gold inched higher, holding above $3,370 per ounce in Asian trade, while oil prices eased after a four-session rally amid anticipation of increased Indian tariffs.
On Wall Street, U.S. stocks closed lower Monday as investors locked in profits following Friday’s strong gains spurred by Fed Chair Jerome Powell’s dovish tone. The Dow dropped 0.8%, the S&P 500 slipped 0.4%, and the tech-heavy Nasdaq eased 0.2%.
European markets also ended Monday in negative territory as traders awaited further details on the U.S.-EU trade agreement. The STOXX 600 fell 0.4%, Germany’s DAX declined 0.4%, and France’s CAC 40 tumbled 1.6%, while U.K. markets remained closed for a public holiday.
