European stocks may open on a sluggish note Monday as investors weigh China concerns and await a fresh reading on U.S. inflation for clues to the Fed’s rate trajectory.
There are fresh concerns about China’s economic growth prospects after Moody’s revoked the credit ratings of 11 Chinese enterprises, citing “business reasons.”
Investors eye a slew of U.S. economic data this week, including the Fed’s preferred gauge of inflation on Thursday for further clues on the prospects of early rate cuts.
Federal Reserve Bank of New York President John Williams said in an interview published Friday that the U.S. central bank is on track to cut interest rates “later this year.”
A string of speeches by Federal Reserve officials this week may provide additional clarity on the timing and pace of rate cuts.
Asian markets traded mostly lower, even as Japan’s Nikkei extended its rally to reach a fresh record high.
Gold ticked higher, buoyed by a softer dollar and heightened geopolitical tensions in the Middle East. Oil held the biggest drop in three weeks on China demand concerns.
U.S. stocks ended mixed on Friday as a slew of Fed officials expressed caution about cutting interest rates too quickly.
The Dow edged up 0.2 percent and the S&P 500 inched up marginally to reach new record closing highs while the tech-heavy Nasdaq Composite shed 0.3 percent.
European markets closed mostly higher on Friday following dovish comments from ECB officials and strong earnings from Standard Chartered.
The pan European STOXX 600 gained 0.4 percent. The German DAX and the U.K.’s FTSE 100 both rose about 0.3 percent while France’s CAC 40 climbed 0.7 percent.
Business News
European Shares Likely To Open On Tepid Note Amid China Concerns
2024-02-26 05:36:23
