While waiting for the Fed, it's a Walmart alert that's impacting European stock markets. The market is in hesitation this Tuesday, July 26, 2022. The Eurostoxx 50 opens at 3,604.16 points (+0.21%), the CAC 40 at 6,237.55 points (+0.33%), the DAX 40 at 13.210.32 points (-0.33%), the FTSE 100 at 7,306.30 points (+0.41%), the SMI at 11,129.35 points (+0.30%), the AEX at 707.01 points (+0.28%), the BEL 20 at 3.744.99 points (+0.16%), the IBEX 35 at 8,051.60 points (+0.49%), the DJIA at 31,990.04 points (+0.28%), the Nasdaq at 11.782.67 points (-0.43%), the S&P 500 at 3,966.84 points (+0.13%) and the Nikkei 225 at 27,685.27 points (-0.05%).

In terms of exchange rates, the change from the close in New York shows EUR/USD at 1.0227 (+0.07%), EUR/JPY at 139.58 (-0.07%) and USD/JPY at 136.49 (-0.14%).

Investors are reacting to U.S. retailer Walmart's earnings warning and turning their attention to the Federal Reserve (Fed) monetary policy meeting, which begins today. However, European equity markets are expected to open near balance. At 7:35 a.m., the CAC 40 futures contract was down 10 points, or 0.15%, according to data from broker IG Markets. The DAX 40 contract was down 8 points, or 0.1%, and the FTSE 100 contract was up 8 points, or 0.1%.

In addition, the decision of the Fed's monetary policy committee (FOMC), which is expected to announce another 75 basis point interest rate hike on Wednesday, is highly anticipated by investors, who will be looking to the Fed to make a decision.Investors will also have to digest this week's figures on gross domestic product (GDP), inflation and household confidence in the United States.Investors have been closely following the Fed's decisions and inflation figures in recent months, and the announcements expected this week should shed some light on the U.S. economy.

Wall Street ended mixed on Monday. After a hesitant session, the Dow Jones Industrial Average (DJIA) gained 0.3% and the broader S&P 500 index advanced 0.1%. The Nasdaq Composite gave up 0.4%, due to profit taking after its 3% gain last week. Asian markets also presented a mixed picture Tuesday. The Nikkei index of the Tokyo Stock Exchange lost 0.1% at the end of the session. In contrast, the Hang Seng gained 1.5% in Hong Kong and the Shanghai Composite advanced 0.8%.

Yields on U.S. Treasury bonds fell on Tuesday morning, but the two-year bond rate remained above 3%. Indicators expected on Tuesday and Wednesday, ahead of the Fed's policy decision, are expected to strengthen the case for a 75 basis point increase in the federal funds rate, as they may highlight a decline in consumer confidence, new home sales and durable goods orders.

The euro is appreciating against the dollar Tuesday morning, but fluctuations are expected to remain limited ahead of the Federal Reserve's policy meeting, says MUFG Bank.

Oil futures continue to rise Tuesday, supported by supply tensions. However, broker Oanda warns that recession fears suggest that any further gains are likely to be "limited to the near term, geopolitics aside." As of 7:25 a.m., the September contract for North Sea Brent crude was up $1.37 to $106.52 a barrel, and the Nymex-listed light sweet crude (WTI) contract for the same time frame was up $1.30 to $98 a barrel.