European Shares Set For Steady Opening Ahead Of Central Bank Meetings

European stocks may open on a positive note Monday ahead of a busy week of corporate earnings and central bank meetings.

Amazon, Apple, Meta and Microsoft are among the top U.S. companies that will release their quarterly earnings results this week after Tesla and Alphabet disappointed markets.

Meanwhile, after a benign June inflation report, markets are wagering the Federal Reserve will lay the groundwork for a September rate cut at its policy meeting on Wednesday.

The yen ticked lower today, after having surged to its strongest in 12 weeks against the dollar last week.

A Bank of Japan policy meeting is due on Wednesday, with markets split over a 10-basis point hike. The central bank may also announce its bond purchase tapering plans.

The Bank of England is expected to cut base rates at Thursday’s meeting but may warn investors not to expect a string of back-to-back interest rate cuts.

In economic releases, the U.S. jobs report for July, closely watched surveys on U.S. and global manufacturing, Eurozone gross domestic product and inflation data, and Chinese factory activity data may influence trading sentiment as the week progresses.

Asian stocks were broadly higher, with Japanese markets leading regional gains.

The dollar dipped while gold rose toward $2,400 per ounce on U.S. rate-cut bets and amid signs of escalating tensions in the Middle East.

Turkish President Recep Tayyip Erdogan escalated tensions with Israel on Sunday, suggesting the possibility of military action against the Jewish state amid ongoing conflict with the Iranian proxy group Hezbollah.

Oil edged up slightly but held near six-week lows ahead of a key OPEC+ meeting this week.

U.S. stocks climbed on Friday to finish a turbulent week on a positive note as a benign June PCE inflation report lifted hopes for more interest rate cuts this year.

Data showed the personal consumption expenditures (PCE) price index inched up by 0.1 percent in June, matching expectations. The annual growth rate slowed to 2.5 percent from 2.6 percent in May.

Personal income rose by less than expected in June while personal spending increased in line with estimates. A measure of U.S. consumer sentiment deteriorated by slightly less than previously estimated in July.

The Dow surged 1.6 percent, the tech-heavy Nasdaq Composite rallied 1 percent and the S&P 500 added 1.1 percent.

European stocks closed on a firm note Friday as a global sell-off eased and investors reacted to a slew of encouraging earnings updates.

The pan European STOXX 600 jumped 0.8 percent. The German DAX gained 0.7 percent, while France’s CAC 40 and the U.K.’s FTSE 100 both jumped by 1.2 percent.

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