European stocks look set to tumble at open on Monday as investors grapple with growth and inflation concerns.
China’s export growth slowed to single digits in April, while imports were unchanged as worsening COVID-19 outbreaks and wider curbs cut demand, data released earlier in the day showed.
The dollar remained elevated amid the flight-to-safety and U.S. 10-year bond yields edged up to a fresh top at 3.15 percent, reflecting expectations the Federal Reserve will accelerate the pace of its monetary tightening.
U.S. inflation data as well as speeches from several Fed officials due this week should give valuable extra clues.
Elsewhere, Russian President Vladimir Putin is due to address a military parade in Red Square on Russia’s Victory Day holiday, as fighting continues in Ukraine.
Gold prices slipped on a firmer dollar, while oil edged up slightly as the United States Department of the Treasury announced new sanctions against Russia and the G7 countries pledged to stop Russia oil imports.
The U.K. government pledged an additional 1.3 billion pounds in military support to Ukraine during this financial year.
U.S. stocks fluctuated before closing mostly lower on Friday as rising oil prices and solid hiring data added to worries about the outlook for interest rates.
Data showed non-farm payroll employment surged by a better-than-expected 428,000 jobs in April, matching the revised jump seen in March. The jobless rate remained at a low 3.6 percent.
The tech-heavy Nasdaq Composite tumbled 1.4 percent to hit its lowest closing level in well over a year and the S&P 500 slid 0.6 percent to nearly one-year closing low, while the Dow dipped 0.3 percent to a two-month closing low.
European stocks also fell sharply on Friday amid lingering concerns about growth, soaring inflation and rising interest rates.
The pan European Stoxx 600 plunged 1.9 percent. The German DAX lost 1.6 percent, France’s CAC 40 index shed 1.7 percent and the U.K.’s FTSE 100 declined 1.5 percent.
Business News
European Shares Set For Gap-down Opening
2022-05-09 05:32:54
