European markets set for cautious open; hawkish Fed, Russia sanctions in focus

European markets set for cautious open; hawkish Fed, Russia sanctions in focus

LONDON — European markets were muted on Thursday morning as the U.S. Federal Reserve's monetary tightening plans and the ongoing war in Ukraine continue to guide sentiment. The pan-European index nudged 0.2% higher in early trade, with health care stocks gaining 0.9% while the oil and gas sector dropped 1.2%. The European blue chip index as hawkish comments from two Fed policymakers heightened expectations that the central bank would embark on a more aggressive tightening process. Wall Street then sold off for the second consecutive day on Wednesday as  that officials planned to reduce their trillions in bond holdings by a consensus amount of around $95 billion. Meanwhile, policymakers indicated that one or more 50-basis-point interest rate hikes could be warranted to battle surging inflation. pointed lower in early premarket trade on Thursday, while also fell, with Japan's Nikkei 225 shedding almost 2% to lead losses. Investors worldwide are also keeping an eye on the fallout from as it battles another surge in cases, potentially further disrupting global supply chains. They're also awaiting details of a new round of Western sanctions against Russia after . NATO foreign ministers gathered in Brussels on Wednesday for a two-day meeting to address