European edge higher ahead of ECB policy meeting

European stock markets were up slightly earlier on Tuesday ahead of the European Central Bank’s (ECB) policy meeting expected on Thursday.

Germany’s DAX futures were up by 0.2% at 02:05 AM ET (0605 GMT), while France’s CAC futures inched up by 0.3%. In the UK, FTSE contracts were seen rising by 0.4%.

Investors are eyeing the European Central bank’s meeting with expectations that it may be forced to reach a decision after a U.S. Federal Reserve move to continue its inflation targets during a previous meeting held in August.

The eurozone economy is forecasted to recover in the third quarter of the year after a record three-month slump from June onwards. Meanwhile, France’s official statistics agency on Tuesday forecasted a 9% drop in gross domestic product in 2020 due to the COVID-19 pandemic. Overall, second-quarter GDP figures have been close to the ECB’s initial forecast according to board member Isabel Schnabel.