Lucy Harley-McKeown
Stocks gain as traders look to central bank decisions
How major markets are performing on Tuesday
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The FTSE 100 and European markets rose on Tuesday, as investors look to key central bank decisions later in the week.
The FTSE 100 (^FTSE) rose 0.4% by the closing bell, supported by DIY retail giant Kingfisher (KGF.L). B&Q owner Kingfisher gained 10.5% as its results hit expectations and it said it had gained market share in the UK and Poland.
The DAX (^GDAXI) was up 0.5% in Germany and France's CAC (^FCHI) rose 0.5%.
In the US, the Dow Jones Industrial Average (^DJI) moved up roughly 0.4%, coming off a record-high close for the blue-chip index. The S&P 500 (^GSPC) added about 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) put on 0.7%.
Traders have their eyes trained on central bank decisions later in the week from the Bank of England and Federal Reserve.
It's widely thought the Fed will move to cut rates as it meets today and tomorrow. Money markets have upped the odds on a jumbo 50 basis-point cut as economic data heads in the right direction.
Investors were weighing data that showed retail sales surpassed Wall Street's estimates in August, with the focus on signs of a slowdown in consumer spending. The reading is the last piece of data that could factor into the Fed's thinking on opting for a substantial rate cut rather than a quarter-point move.
The Bank of England will also announce its interest rate decision on Thursday. Threadneedle Street moved to cut rates in August — the first reduction since the pandemic. It is expected to hold on Thursday.
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