The FTSE 100 and stocks across the US were lower on Tuesday as markets await several central bank decisions in the west. Meanwhile, Indian electoral count is underway.
The FTSE 100 (^FTSE) moved 0.4% lower by the close, while the DAX (^GDAXI) was down 1% and the CAC (^FCHI) fell 0.7%.
The pan-European Stoxx 600 (^STOXX) dipped 0.5% by the close.
Over in the US, the S&P 500 (^GSPC) was down 0.3%, the Dow (^DJI) lost nearly 40 points to trade 0.1% lower and the Nasdaq (^IXIC) fell 0.4%.
Stocks have struggled to find a footing as investors face a dilemma over the path of interest rates. Recent weak data has prompted Wall Street strategists to scale back their optimism for economic growth, which supports a case for rate cuts. But Federal Reserve officials have warned against hoping for a pivot anytime soon as they wait for inflation to cool sufficiently — and when that time comes isn't clear.
In India, the Nifty 50 (^NSEI) index headed more than 6% into the red as the election count progressed, and it became clear that incumbent leader Narendra Modi's party BJP is poised for losing outright majority. Modi is still likely to become the prime minister as the BJP-led alliance NDA has the numbers to form the next government.
It was thought that it would be a landslide victory for the BJP. However, the Indian National Congress and it's allies in the INDIA bloc have seriously dented BJP's lead. Latest trends show the INDIA bloc leading in Uttar Pradesh, the north Indian state with 80 parliamentary seats, the most for a single state in India.
Later in the week there is set to be an ECB rate cut, and jobs data from the US which will give more of an indication on the direction of fiscal policy.
S&P 500 (^GSPC)
