European stocks are seen opening on a tepid note Monday as economic concerns mount.
The dollar index dipped and bond yields eased amid the growing threat of a recession in Europe and the United States.
Asian markets were broadly lower and oil prices fell about 1 percent on worries over a gloomy economic outlook.
The U.S. Federal Reserve is expected to raise its key interest rate again by 75 bps on Wednesday as part of its ongoing efforts to combat elevated inflation.
Markets will be keenly watching the Fed commentary for near-term triggers.
U.S. Q2 GDP data will be released on Thursday, with some observers warning it could show a second successive contraction. A negative print would take the world’s largest economy into a technical recession.
Trading this week could also be impacted by reaction to reports on consumer confidence, new home sales, durable goods orders, second quarter GDP and personal income and spending.
On the earnings front, a slew of big-name companies including Coca-Cola, McDonald’s, Alphabet, Microsoft, Boeing, Pfizer, Amazon and Intel are due to report their quarterly results this week.
Closer home, Germany Ifo business confidence survey results are due later in the session. The business sentiment index is forecast to fall to 90.2 in July from 92.3 in the previous month.
U.S. stocks closed lower on Friday to snap a three-day winning streak following dismal earnings updates from Twitter and Snap.
Treasuries extended an advance and traders pared their expectations for Fed rate hikes after a survey showed U.S. business activity contracted in July for the first time in two years.
The tech-heavy Nasdaq Composite tumbled 1.9 percent, the S&P 500 shed 0.9 percent and the Dow dipped 0.4 percent.
European stocks fluctuated before closing slightly higher on Friday, as weak Eurozone business activity and British consumer confidence data sent bond yields across the common currency bloc tumbling.
The pan European Stoxx 600 gained 0.3 percent to close at its highest level since June 10.
The German DAX and the U.K.’s FTSE 100 both finished marginally higher while France’s CAC 40 index rose 0.3 percent.
European Shares Poised For Weak Start As Growth Worries Weigh
2022-07-25 05:42:12
