European Shares Likely To Open On Subdued Note

European stocks may open on a tepid note Monday, with investor focus firmly on central bank meetings and U.S. corporate earnings.

The dollar traded firm and gold edged lower as investors await policy announcements by the U.S. Fed and Bank of England in early May for clarity on their rate-hike strategies.

Fed Governor Lisa Cook said on Friday that U.S. inflation remains elevated and broad-based but the outlook for the next stage of monetary policy is less clear.

ECB President Christine Lagarde said last week that Eurozone inflation is too high and the monetary policy “still has a bit of way to go” to bring back inflation towards the central bank’s 2 percent goal.

The Fed is expected to deliver a final 25-basis-point (bps) interest rate increase in May and then hold rates steady.

The ECB’s next move on May 4 could be either a 25 or 50-bps hike. The Bank of England is seen raising rates to 4.5 percent on May 11.

The Bank of Japan’s policy meeting this week marks the first meeting to be chaired by new BOJ Governor Kazuo Ueda.

On the earnings front, Coca-Cola, 3M, General Electric, McDonald’s, Alphabet, Amazon, Intel and Exxon Mobil are among the prominent U.S. companies due to report their quarterly earnings results this week.

In economic releases, U.S. and euro-area GDP data will be released this week.

Traders keenly await U.S. Commerce Department’s report on personal income and spending, which includes a reading on inflation said to be preferred by the Federal Reserve.

Asian markets traded mixed in cautious trade while oil extended last week’s steep losses on uncertainty over the global economic outlook.

U.S. stocks ended little changed on Friday, with the Dow snapping a four-week winning run amid mixed earnings results and recession fears.

The major U.S. averages all finished marginally higher as new data indicated a faster rise in business activity at U.S.-based firms in April.

European stocks rose on Friday, with sentiment helped by strong private sector activity data from the U.K. and euro zone.

The pan European STOXX 600 gained 0.3 percent. The German DAX and France’s CAC 40 both gained around half a percent while the U.K.’s FTSE 100 edged up 0.2 percent.

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