European markets are headed for a flat open as political and economic uncertainty shakes sentiment in the region.
Regional indexes closed mixed on Monday, with investors following US debt ceiling negotiations, an inconclusive Turkish election now due for a runoff and a higher forecast for EU inflation this year.
The European Commission on Monday raised its inflation forecast for the euro zone to 5.8% this year and 2.8% in 2024, and said it expected the European Central Bank to continue with hikes rate, further weakening the terms of the loans. However, it also revised its gross domestic product estimates higher, forecasting growth of 1% this year, up from a previous estimate of 0.8%.
The latest indicator of the eurozone’s health comes today when a preliminary estimate of the eurozone’s first-quarter gross domestic product is released.
