Title: European Stock Futures Edge Higher; Chinese Support Helps Tone
August 30, 2022 02:07 AM ET
European stock markets are expected to open slightly higher Tuesday, rebounding from a negative start to the week as Chinese officials pledged to boost the world's second-largest economy.
At 02:05 ET, Germany's DAX futures were trading up 0.1 percent, France's CAC 40 futures were up 0.2 percent, and the U.K.'s FTSE 100 futures were up 0.2 percent, returning after the U.K. holiday weekend.
China will step up measures to boost demand and stabilize employment and prices in the second half of the year to optimize economic performance, the country's finance ministry said Tuesday, as policymakers struggle to shore up faltering growth.
The comments follow a package of new economic stimulus measures announced by the Chinese cabinet last week, including billions of dollars in strategic financing.
The news that Chinese officials are trying to revive their country's economy contrasts with the tightening of monetary policy seen in much of the rest of the world.
Federal Reserve Chairman Jerome Powell struck a hawkish tone at the Jackson Hole conference last week, suggesting that the U.S. central bank would not hesitate to tighten credit to contain inflation, even in the early stages of a recession.
Powell's comments were echoed by European Central Bank board member Isabel Schnabel over the weekend, who said central banks must act aggressively to combat rising inflation.
With that in mind, investors will be looking at this week's data to determine if fears of a global recession are justified.