European Shares Seen Broadly Higher As Rate Hike Worries Ebb

European stocks are seen opening on a mixed note Tuesday, with China growth concerns likely to keep metal stocks under pressure.

U.S. benchmark Treasury yields slipped, and the dollar sank after several Fed officials said on Monday that higher interest rates are needed to reach the 2 percent inflation target, but the end to the current monetary policy tightening cycle is getting close.

Investors also await upcoming U.S. consumer and producer price inflation figures this week, along with speeches by Fed officials, including Neel Kashkari and Loretta Mester for directional cues.

Asian markets traded mostly higher after Beijing extend its policy support to the ailing property sector.

Taiwan Semiconductor Manufacturing Co. reported better than expected sales, further aiding sentiment.

The Chinese yuan hit a two-week high earlier in the day after a series of strong midpoint fixes by the People’s Bank of China aimed at defending the currency.

Gold edged up slightly on dollar weakness while oil traded around half a percent higher after falling about 1 percent in the U.S. trading session overnight on fuel demand concerns.

U.S. stocks rose in cautious trade overnight after U.S. Treasury Secretary Janet Yellen said her talks with senior Chinese officials were productive and a trio of Fed policymakers reiterated the need for more rate hikes.

The Dow gained 0.6 percent, while the S&P 500 and the tech-heavy Nasdaq Composite both added around 0.2 percent.

European stocks finished broadly higher on Monday as China stimulus hopes offset survey results showing a drop in eurozone investor sentiment for the third straight month.

The pan European STOXX 600 inched up 0.2 percent. The German DAX and France’s CAC 40 both rose about half a percent while the U.K.’s FTSE 100 edged up 0.2 percent.

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