European markets close higher on recovery hopes; Fed in focus; VW up 6%
European stocks closed higher on Tuesday as market attention focused on the global economic recovery and the latest meeting of the U.S. Federal Reserve.
The pan-European Stoxx 600 finished up 0.8%, with autos climbing 2% to lead gains while oil and gas stocks fell 1%.
Market focus is on the Federal Reserve which kicks off its two-day meeting on Tuesday, followed by a statement and briefing from Chairman Jerome Powell on Wednesday.
A surge in interest rates and a rebounding U.S. economy has put the central bank’s easy policies in the spotlight and market watchers have questioned when the Fed may consider unwinding those policies.
Later this week, the Bank of England is due to meet on Thursday and the Bank of Japan will also begin its two-day policy meeting that day.
Volkswagen is targeting 5%-6.5% operating margin this year and 7%-8% in the ensuing years, as it eyes cost cuts and an ambitious expansion into the electric vehicle market. Shares of the world’s second-largest automaker surged 6.7%.
Reference: CNBC
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