European stocks are seen opening flat to slightly lower on Monday as traders focus on surging energy prices and await the earning season to assess the impact of supply chain disruptions and rising costs.
The U.S. earnings season kicks off this week, with JPMorgan reporting on Wednesday, followed by BofA, Morgan Stanley and Citigroup on Thursday, and Goldman on Friday.
The focus will also be on U.S. inflation and retail sales data, and minutes of the Federal Reserve’s last meeting which should confirm that a November tapering was discussed.
On the coronavirus front, Italy has hit its target of vaccinating 80 percent of adults – one day after violent anti-vaccine protests. Meanwhile, Russia has recorded its worst death toll of the pandemic.
The United Kingdom is easing its travel restrictions starting today, allowing travelers from more nations to enter the country.
Asian markets traded mixed and the dollar hit a more than two-year high against the yen, while crude oil prices extended their bull run after rising 4 percent last week to the highest in almost seven years.
Treasury futures fell, after the 10-year U.S. Treasury yield advanced past 1.6 percent on Friday.
U.S. stocks ended lower on Friday and bond yields rose as a soft jobs report did little to allay fears that the Federal Reserve will begin tapering its massive bond purchases as early as next month.
The Dow ended flat with a negative bias, the S&P 500 eased 0.2 percent and the tech-heavy Nasdaq Composite shed half a percent.
Non-farm payroll employment rose by 194,000 jobs in September after climbing by an upwardly revised 366,000 jobs in August, data showed. Economists had expected employment to jump by 500,000 jobs.
The unemployment rate fell to 4.8 percent in September from 5.2 percent in August due to a decrease in the size of the labor force, reflecting lingering labor supply constraints.
European stocks fell on Friday on the back of disappointing German exports data and U.S. jobs report.
The pan European Stoxx 600 slipped 0.3 percent. The German DAX dropped 0.3 percent and France’s CAC 40 index declined 0.6 percent while the U.K.’s FTSE 100 rose 0.3 percent.
Market Analysis
European Shares Set To Open On Cautious Note
2021-10-11 05:32:04
