Europe: Stocks advance at open

EUROPE’S main stock markets opened higher on Tuesday (Sep 20) after earlier Asian gains, but looming interest rate hikes remain in focus.

London’s benchmark FTSE 100 index won 0.8 per cent to 7,295.40 points after a holiday closure on Monday for the state funeral of Queen Elizabeth II.

In the eurozone, Frankfurt’s DAX index added 0.5 per cent to 12,869.10 points and the Paris CAC 40 rose 0.6 per cent to 6,096.06.

Global central banks are lifting interest rates in an attempt to cool red-hot inflation, but this also weighs on economic activity.

The US Federal Reserve is forecast on Wednesday to hike its key interest rate by another 0.75 percentage points.

One day later, the Bank of England is predicted to deliver another sizeable increase in British borrowing costs. AFP