European stocks may open a tad higher on Monday, though trading volumes are likely to remain thin due to Presidents’ Day holiday in the U.S.
Asian markets traded mixed, with Chinese stocks rallying after the country’s central bank kept its benchmark lending rates unchanged for the sixth straight month in February, as widely expected.
New Zealand’s benchmark S&P/NZX-50 index fell over 2 percent ahead of the Reserve Bank of New Zealand’s (RBNZ) interest rate decision due on Wednesday.
Geopolitical tensions remained on investors’ radar after North Korea fired off two short-range ballistic missiles.
Gold was marginally lower as the dollar recovery gathered steam on hawkish comments from Federal Reserve officials.
Federal Reserve Governor Michelle Bowman said in a speech on Friday that inflation remains “much too high” and the U.S. central bank will have to continue to raise the federal funds rate.
Oil prices were slightly higher following last week’s steep losses after the United States reported higher crude and gasoline inventories.
As rate-hike worries mount, investors await the release of minutes from the U.S. Federal Open Market Committee (FOMC) meeting on Wednesday for further clarity.
A report on personal income and spending due this week is also likely to be in focus, as it includes a reading on inflation said to be preferred by the Federal Reserve.
On the earnings front, financial results from Home Depot, Walmart and Etsy will offer fresh insights into consumer strength or weakness.
U.S. stocks ended mixed on Friday as yields on the 10-year and 2-year U.S. Treasury bonds hit levels not seen since November amid lingering worries about stubbornly high inflation and expectations the Fed will keep raising rates for longer.
The Dow inched up 0.4 percent but notched its third straight week of losses. The S&P 500 eased 0.3 percent and the tech-heavy Nasdaq Composite shed 0.6 percent.
European stocks came off early lows on Friday but still finished in the red, dragged down by energy and tech stocks. The pan-European STOXX 600 gave up 0.2 percent.
The German DAX and France’s CAC 40 index both slipped around 0.3 percent while the U.K.’s FTSE 100 edged down 0.1 percent.
Business News
European Shares Set For Steady Start
2023-02-20 05:40:53
