LONDON — European stocks are set to open in mixed territory on Tuesday after sharp declines in global markets on Monday amid concerns that central banks could be forced into aggressive monetary policy tightening with inflation remaining high.

Britain’s FTSE is expected to open 23 points higher at 7,226, Germany’s DAX 44 points higher at 13,464, France’s CAC 40 up 7 points at 6,030 and Italy’s FTSE MIB down 9 points at 21 955, according to data from IG.

Global stock markets were shaken on Monday as investors reacted to the potential for more aggressive rate hikes by central banks in Europe and the United States after the latest inflation report.

The Fed meets

Against this backdrop, the US Federal Reserve is at the heart of market action this week, with Fed officials meeting on Tuesday and Wednesday to discuss their next monetary policy move.

The Federal Open Market Committee is expected to announce a hike of at least 50 basis points on Wednesday, after already raising rates twice this year, although market bets for a 75 basis point hike have risen in light of Friday’s inflation.

The Bank of England‘s monetary policy committee will announce its latest interest rate decision on Thursday. The Bank of Japan, the Swiss National Bank and Brazil’s BCB are also meeting this week.

On the data front in Europe on Tuesday, German inflation figures for May, Britain’s unemployment rate for April, Eurozone industrial production data for April and Germany’s ZEW Economic Sentiment Index for June should be on the cards. published.