European stocks slip marginally; Fed meeting, economic data in focus

European stocks traded in a muted fashion Tuesday, awaiting news from the Federal Reserve policy meeting while digesting key regional economic data.

At 03:05 ET (07:05 GMT), the DAX index in Germany dropped 0.1%, the CAC 40 in France slipped 0.2% and the FTSE 100 in the U.K. fell 0.1%.

Fed meeting starts 

The Fed starts its latest two-day policy meeting later in the session, limiting activity as investors look for the U.S. central bank to cut interest rates at the conclusion on Wednesday, potentially offering global support.

The Bank of England also meets later this week, but is widely expected to hold still on Thursday, having cut interest rates last month for the fifth time in just over a year.

U.K. inflation came in at 3.8% in July, the highest in the Group of Seven advanced economies and almost twice the U.K.’s central bank’s medium-term target.

However, data released earlier Tuesday showed U.K. employment falling for a seventh month in row and wage growth slowing, potentially easing worries at the Bank of England about persistent inflation pressures.

There is more economic data to digest in the eurozone Tuesday, including Italian inflation, German ZEW economic sentiment and eurozone industrial production.

U.S.-China trade talks 

Wider sentiment was also supported by progress in U.S.-China trade talks in Madrid.

Treasury Secretary Scott Bessent said Washington and Beijing had reached a framework deal on TikTok’s U.S. ownership. He added that China dropped demands for tariff concessions, while the U.S. secured commitments to address national security concerns.

President Donald Trump and Chinese President Xi Jinping are expected to speak later this week to finalize details.

However, there remains uncertainty over this relationship after Chinese regulators said a preliminary probe found Nvidia had violated anti-monopoly rules.

In the corporate sector, Anglo American (LON:AAL) and Chilean state-run copper giant Codelco said they have finalised an agreement to jointly operate their neighbouring Chilean mines, aiming to unlock at least $5 billion in value.

Jersey-based professional services company JTC (LON:JTC) said first-half profit fell over 60% from a year earlier, as acquisition costs and share-based payments offset higher revenue.

U.K. construction group Kier Group (LON:KIE) reported stronger than expected annual results, with the company detailing a record order book, while shareholders will receive an increased dividend payment and a share buyback program has started.

Crude slips slightly

Oil prices edged lower Tuesday, pausing for breath after recent gains as Ukraine’s attacks on Russian oil facilities spurred increased concerns over potential supply disruptions.

At 03:05 ET, Brent futures dropped 0.2% to $67.28 a barrel, and U.S. West Texas Intermediate crude futures fell 0.1% to $63.25 a barrel.

Both contracts have gained between 1% and 2% over the last week as Ukraine has ramped up its offensive against Russia after U.S.-brokered peace talks proved to be inconclusive.

Kyiv was seen especially targeting Russian oil facilities in an attempt to stymie Moscow’s ability to fund its war against Ukraine.