European stocks mixed.
European stocks traded in tight ranges Tuesday, with investors digesting French political turmoil ahead of the release of key U.S. inflation data.
At 03:05 ET (07:05 GMT), the DAX index in Germany dropped 0.1%, while the CAC 40 in France gained 0.2% and the FTSE 100 in the U.K. rose 0.1%.
French political turmoil
Bayrou’s minority government in France fell on Monday after the prime minister lost the vote of confidence, with members of Parliament voted 364-194 to remove him from office.
He was widely expected to lose the motion after failing to win support from political rivals on both the right and left for 2026 budget plans aimed at reducing the country’s gaping budget deficit.
President Emmanuel Macron will now have to appoint France’s fifth prime minister in less than two years. He is likely to choose another centrist ally to lead a minority government, but this isn’t likely to provide a lasting political solution.
French markets face another major test on Friday when Fitch Ratings reviews its AA- French rating with a negative outlook. France’s credit rating was downgraded by Moody’s after its previous government collapsed last year.
Bitcoin price today recovers to near $112k.
Bitcoin rose on Tuesday, recouping a small measure of recent losses on growing bets that U.S. interest rate cuts were imminent, although emerging doubts over a corporate treasury strategy kept gains limited and traders cautious.
Broader crypto prices gained some ground after logging steep losses in the beginning of September, although they largely lagged a rally seen in equities and gold. Crypto also appeared to be seeing little benefit from improving risk appetite, as markets bet on a September rate cut by the Federal Reserve.
Bitcoin stalls amid crypto stock rout
Emerging doubts over the long-term returns on corporate Bitcoin buying crept into markets in recent weeks, especially following Bitcoin’s tumble from mid-August record highs.
Stocks upbeat as prospect of Fed easing.
Asia stocks rose on Tuesday, buoyed by expectations of a U.S. rate cut as early as next week, even as political upheavals around the world kept currency and bond investors on edge.
MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.7%, taking its cue from Wall Street’s positive lead overnight that saw the Nasdaq index notch a record-high close.
Nasdaq futures were last up 0.06%, while S&P 500 futures similarly ticked up 0.05%.
European futures, meanwhile, eased after regional benchmark indexes clocked gains in the cash session on Monday.
EUROSTOXX 50 futures fell 0.2%, while FTSE futures and DAX futures dipped 0.13% and 0.26%, respectively.
Breathing new life into the equities rally were expectations that the Federal Reserve would ease rates when it meets next week, following Friday’s weak U.S. jobs report.
While consumer and producer price inflation data are due in the week ahead, investors are betting that a 25-basis-point cut this month is a done deal, with focus now on whether the Fed could deliver a larger 50bp move.
The U.S. Labor Department will also report a preliminary revision estimate to the employment level for the 12 months through March later in the day.
“Both publications are poised to influence the central bank’s pace down the monetary policy stairs,” said Jose Torres, senior economist at Interactive Brokers, referring to the PPI and CPI figures.
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