World stocks markets, on Tuesday, July 25, traded higher withe share benchmarks rising in Europe early Tuesday, driven by reports showing an improved economic outlook, as investors awaited a slew of corporate earnings reports.
A meeting of the Federal Reserve and caution over potential twists and turns in U.S. politics kept most indexes trading within a narrow range.
Germany’s DAX climbed 0.4 percent to 12,252.08 and the CAC 40 of France added 0.7 percent to 5,161.01. The FTSE 100 of Britain jumped 0.9 percent to 7,440.91. Shares looked set to drift higher on Wall Street, with Dow futures unchanged and S&P futures up 0.03 percent.
The International Monetary Fund’s latest economic projections revised growth forecasts upward for economies in the 19-country eurozone after a run of elections saw populist politicians defeated and risks to its outlook abated.
Meanwhile, a survey showed business confidence in Germany has risen to a new record high as managers’ views of both their outlook and their current situation brighten.
The government announced a new economic plan promising to boost incomes and improve the country’s sagging social safety net.
However, despite an upgrade in the growth forecast for Asia’s fourth largest economy, to 3 percent from 2.6 percent, shares fell as investors cashed in profits after a long spate of record-high closes driven by optimistic expectations for corporate earnings.
The Federal Reserve’s policymaking committee begins a two-day meeting on Tuesday, following its decision last month to raise short-term interest rates for the third time since December.
The central bank also announced plans to start gradually paring its bond holdings later this year, a move that could cause rates to rise. Most investors expect the Fed to hold rates steady at this week’s meeting and possibly raise them one more time this year.
