The FTSE 100 (^FTSE) and European stocks gained while US stocks enjoyed a mixed opening, as traders turn their attention to a speech by Federal Reserve chair Jerome Powell later on Tuesday.
Powell is scheduled to deliver a speech on monetary policy, a topic that's being even more closely watched than usual after policymakers last week lowered rates for the first time in 2025.
His comments will set the stage for the release on Friday of the Fed's preferred inflation gauge, the Personal Consumption Expenditures index. Wall Street will look for signs that already sticky inflation isn't heating up – a scenario that could temper high expectations for two more rate reductions this year.
Meanwhile, the latest economic outlook report by the Organisation for Economic Co-operation and Development (OECD) set out projections of slowing global growth, with GDP expected to slow from 3.3% in 2024 to 3.2% this year and 2.9% in 2026.
The report said the slowdown is due, in part, to higher tariffs and ongoing policy uncertainty.
Inflation in most G20 economies is projected to fall as economic growth and labour markets continue to soften. Headline inflation is expected to decline from 3.4% this year to 2.9% in 2026 while core inflation remains broadly stable, easing only slightly from 2.6% to 2.5%.
Meanwhile, gold prices hit an all-time record this morning as traders assessed mounting geopolitical uncertainty.
Gold (GC=F) futures were trading 1.1% higher by the afternoon. The price of the yellow metal is up more than 46% so far this year. Spot gold prices have also risen about 1.1% today, reaching $3,754.
Gold typically gains during times of uncertainty, when investors are looking for safe places to store value. Geopolitical tensions have increased this week as leaders of western powers such as the UK and France moved to recognise Palestinian statehood at the UN.
There are also concerns over the continuing Russia-Ukraine war as peace brokering efforts by president Donald Trump have fallen flat.
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London's premier index rose 0.2% by 2.45pm, led by B&Q owner Kingfisher (KGF.L), which gained around 19% in early trade after a positive set of results.
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The DAX (^GDAXI) in Germany rallied 0.4% while the CAC 40 (^FCHI) in Paris moved 0.9% into the green.
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The pan-European STOXX 600 (^STOXX) gained 0.5%.
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The pound was flat against the dollar (GBPUSD=X) after having lost about 1% over the past five sessions.
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The Dow Jones Industrial Average (^DJI) nudged up nearly 0.5%. The S&P 500 (^GSPC) hovered and the tech-heavy Nasdaq Composite (^IXIC) dipped more than 0.3%.
