European Shares Set For Soft Start

(RTTNews) - European stocks are poised to open lower on Monday amid anxiety about rising U.S. interest rates and cooling growth in top consumer China.

The U.S. 10-year Treasury yield held near 7-year high on expectations for faster rate increases after Federal Reserve chairman Jerome Powell said last week the U.S. central bank was "a long way" from neutral on interest rates.

Reports on U.S. producer and consumer prices due this week as well as remarks by several Federal Reserve officials may offer vital clues over the next rate hike move by the Fed in December.

On the corporate earnings front, financial giants Citigroup (C), J.P. Morgan Chase (JPM), and Wells Fargo (WFC) will kick off the earnings season for banks on Friday.

The dollar edged higher as Beijing moved to boost liquidity by reducing bank reserve requirements, amid an escalating trade with the U.S.

Separately, China's private sector logged a moderate growth in September as improved services activity was offset by softer manufacturing growth, survey data from IHS Markit showed.

The Caixin composite output index rose marginally to 52.1 from 52.0 in August. The services PMI picked up to 53.1 from 51.5 a month ago, to signal the strongest increase in activity for three months, while manufacturing production showed a marginal pace of expansion that was the weakest since October 2017.

China's Shanghai Composite index fell nearly 3 percent as traders returned to their desks after a week-long national holiday. The Japanese markets are closed for a holiday.

Gold prices inched lower amid dollar strength while London aluminium prices fell more than 3 percent after a Brazilian court approved emergency waste measures that could allow the world's biggest alumina refinery to resume production.

Brent crude prices fell more than 1 percent in Asian trade after reports that the U.S. is considering granting some waivers on sanctions against Iran for nations that have shown some efforts to reduce their imports of Iranian oil. There was also chatter that Saudi Arabia has replaced all of Iran's lost oil.

Industrial production figures from Germany and investor confidence data from euro area are due later in the session, headlining a light day for the European economic news.

U.S. stocks finished lower on Friday as a strong jobs report pushed bond yields higher and added to worries about rising interest rates. The Dow dropped 0.7 percent, the tech-heavy Nasdaq fell 1.2 percent and the S&P 500 shed 0.6 percent.

While the Labor Department report showed weaker than expected job growth in September, a significant upward revision to the pace of job growth in August and a fall in the jobless rate to its lowest level since 1969 kept the Fed firmly on track to continue raising rates once a quarter, with the next hike likely to come in December.

European markets also ended deep in the red on Friday amid concerns surrounding Italy, rising bond yields and Brexit uncertainty.

The pan-European Stoxx Europe 600 index declined 0.9 percent. The German DAX tumbled 1.1 percent, France's CAC 40 index lost 1 percent and the U.K.'s FTSE 100 slumped 1.4 percent.
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