European markets set to inch higher on Pfizer vaccine approval and easing taper worries

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  • Focus for global investors this week remains on the Fed's Jackson Hole symposium, which takes place virtually on Thursday.
  • Investors continue to keep one eye on the unfolding situation in Afghanistan.

LONDON โ€” European stocks are set for a slightly higher open on Tuesday as investors take heart from the U.S. Food and Drug Administration's full approval of the Pfizer/BioNTech vaccine and calming worries about imminent tapering from the Federal Reserve.

Britain's FTSE 100 is seen around 15 points higher at 7,124, Germany's DAX is set to climb around 37 points to 15,890 and France's CAC 40 is expected to add around 22 points to 6,705, according to IG.

Shares in Asia-Pacific rose in Tuesday's trade, following suit from the U.S. on Monday as the tech-heavy Nasdaq Composite jumped to a record close on the back of the FDA's vaccine approval.

Focus for global investors this week remains on the Fed's Jackson Hole symposium, which takes place virtually on Thursday, where policymakers could detail their plans for tapering the central bank's $120 billion a month bond buying program. Fed Chairman Jerome Powell will deliver a speech on Friday.

On the data front, German second-quarter GDP growth figures will be published on Tuesday morning.

Investors continue to keep one eye on the situation in Afghanistan. Reuters reported that G-7 (Group of Seven) leaders are expected the seek a unified decision on Tuesday as to whether or not to recognize the Taliban's leadership, and whether to impose sanctions on the organization.

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In corporate news, Morrisons shareholder Legal & General said Monday that a new agreed $9.54 billion takeover bid for the British supermarket chain from private equity group CD&R is a more accurate reflection of its true value.

Rival Sainsbury's is also the source of speculation, with the company's stock soaring Monday following a report that private equity firms could launch offers of more than $9.6 billion.

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