European stocks may open a tad higher on Monday after Beijing rolled out a string of supportive measures for the property market.
These measures announced last week include lifting of home buying restrictions across several major cities and the announcement of government plans to buy unsold homes.
Earlier today, the People’s Bank of China kept its benchmark loan prime rate unchanged at record lows, as widely expected, to help shore up economic growth.
The U.S. economic calendar remains relatively quiet this week, with reports on durable goods orders, jobless claims and new and existing home sales likely to garner some attention.
The minutes from the Federal Reserve’s April 30 to May 1 meeting as well as remarks by several Fed officials, including Governor Christopher Waller, may also sway sentiment as the week progresses.
Meanwhile, Fed Chair Jerome Powell’s Sunday speech at a Georgetown Law School commencement ceremony contained no comment on monetary policy or the economy
Powell has tested positive for COVID-19 and is currently working from home.
Closer home, manufacturing and services PMI flash numbers from the Eurozone and U.K. inflation prints due this week may offer additional clues on the economic and rate outlook.
The dollar held steady in Asian trading and gold rose about 1 percent to trade above $2,400 per ounce while oil prices were little changed amid uncertainty surrounding Iranian President Ebrahim Raisi’s condition after a helicopter crash.
State media outlets reported that “no survivors” were found at the crash site of the helicopter.
U.S. stocks fluctuated before ending mostly higher on Friday, marking their fourth winning weak in a row on hopes of a September rate cut from the Federal Reserve.
The Dow edged up 0.3 percent to close above 40,000 for the first time and the S&P 500 added 0.1 percent while the tech-heavy Nasdaq Composite finished marginally lower.
European stocks closed slightly lower on Friday to snap a nine-day winning streak on the back of hawkish Fed comments, some disappointing earnings and mixed economic data from China.
The pan European STOXX 600 slipped 0.1 percent. The German DAX and the U.K.’s FTSE 100 both eased around 0.2 percent, while France’s CAC 40 shed 0.3 percent.
Business News
European Shares Seen Opening Up On China Optimism
2024-05-20 05:38:25
