British News Agency

According to analysts, the UK’s FTSE index is set to open slightly lower, Germany’s DAX index down 0.2 percent, France’s CAC 40 down 0.42 percent, while Italy’s FTSE MIB index is expected to open unchanged.

The anticipated weak opening in Europe follows Monday’s rebound in major U.S. indices, supported by stronger trading in artificial intelligence stocks and renewed hopes that the U.S. Federal Reserve (Fed) will cut interest rates.

Investors continue to monitor news that could influence the Fed’s upcoming monetary policy decision. Analysts say markets are pricing in an over-80 percent probability of a quarter-point rate cut in December.

This probability increased after New York Fed President John Williams said last Friday that there was room for a rate cut “in the near term.” On Monday, San Francisco Fed President Mary Daly told the Wall Street Journal that she supports a rate cut due to labor-market concerns.

On Tuesday in Europe, earnings reports from Compass Group, EasyJet and Kingfisher are expected, along with macroeconomic data including Germany’s GDP and France’s consumer confidence.

UK investors are preparing for Wednesday’s Autumn Budget, with forecasts suggesting Chancellor Rachel Reeves will announce a series of tax increases.