European Markets Set for Positive Opening Amid Anticipations of U.S. Interest Rate Cuts and Strong Asia-Pacific Performance

European markets are set to open higher on Tuesday, recovering from a slow start to September trading earlier in the week. Investors are showing optimism following a volatile August, with key indices like the U.K.’s FTSE, Germany’s DAX, France’s CAC 40, and Italy’s FTSE MIB expected to edge up. Analysts are closely watching economic data and interest rate expectations as the U.S. Federal Reserve prepares for its next meeting in mid-September, where a potential rate cut is on the horizon.

In Asia-Pacific, markets mostly posted gains overnight, driven by South Korea’s inflation easing to its lowest year-on-year level since March 2021. This positive momentum is contributing to the cautiously optimistic outlook in Europe. Meanwhile, Europe is awaiting key economic data, including Spanish unemployment figures and U.K. retail sales, which will further shape investor sentiment.

With U.S. markets reopening after the Labor Day holiday and a major jobs report on the way, September trading is expected to remain dynamic. Investors are bracing for what could be a challenging month, but the anticipation of interest rate cuts offers some support for market recovery in the coming days.