European stocks are projected to open in a low key manner on Monday as investors are closely watching the earnings of large tech enterprises and the Federal Reserve's decision on interest rates. Major tech companies including Microsoft, Apple, Meta (formerly Facebook), Amazon, and Alphabet (Google's parent company), along with key Dow constituents like Boeing and Merck, will release their quarterly earnings results this week.
The Federal Reserve's monetary policy announcement is scheduled for Wednesday. It is widely expected that the US central bank will not change interest rates. However, traders will be on the lookout for indications regarding a possible interest rate cut in March.
Other important US economic data that might grip investor's attention this week include monthly jobs statistics, weekly unemployment claims, labor productivity and costs, and manufacturing activity.
Asian markets are making slight inroads as Chinese officials announced new strategies to fortify China's stock market and real estate sector. Guangzhou, a city in southern China, has loosened restrictions on home purchases with the objective of stimulating the property market.
China's securities regulator revealed over the weekend its decision to halt the lending of certain shares for short selling starting on Monday. Despite the dollar holding steady, gold prices saw an uptick in Asian trade. Oil exhibited a higher trend due to escalating tensions in the Middle East.
US President, Joe Biden, vowed to respond to the recent drone attack in Jordan that resulted in the death of three US troops.
On Friday, US stocks witnessed mixed results following semiconductor behemoth Intel's dismal first-quarter outlook and the PCE index for December reinforcing that inflation keeps moderating. While the Dow Jones managed a slight 0.2% increase to a new record closing high, the S&P 500 ended with almost no change, and the tech-rich Nasdaq Composite registered a decline of 0.4%.
European stocks closed at a two-year high on Friday due to some encouraging quarterly earnings and evidence of inflation in the Eurozone receding. The pan-European STOXX 600 ascended by 1.1%, the German DAX nudged up by 0.3%, France's CAC 40 soared by 2.3% and the UK's FTSE 100 advanced by 1.4%.
