European markets opens higher amid increasing QE hopes

European shares edged higher on Tuesday morning, bouncing within a recent tight range as investors await the European Central Bank`s policy decision later this week amid speculation that slower growth will prompt policy makers to accelerate stimulus.

- Euro Stoxx 50 added 0.27%, 8.45 points to trade at 3,183.50

- STX Europe 600 gained 0.16%, 0.56 points to 343.42

- Euro Stoxx rose 0.26%, 0.82 points to 320.46

The European markets closed mostly in the green on Monday after downbeat euro-area manufacturing Purchasing Managers’ Index data raised speculations the ECB will use Quantitative Easing (QE) measures to bolster recovery.

Investors also kept a close eye on the recent escalation in the Ukrainian conflict. The European Union has given Russia a week to change its course in Ukraine otherwise it would face a fresh new round of sanctions.

Looking at other the major European indices:

- British FTSE 100 edged 0.31% higher to 6,846.54

- German DAX added 0.56% to 9,532.18

- French CAC 40 advanced 0.19% to 4,388.12

In Asia, equity markets ended mixed on Tuesday in the absence of a U.S. lead and as the Reserve Bank of Australia`s decided to keep the nation’s interest rate at record high.

RBA decided today to keep the nation’s benchmark interest rate unchanged for another round at 2.50%, where the decision met analysts’ estimates.

Investors in Europe regained some sort of direction on Tuesday with the U.S. markets reopening after a Monday`s holiday.