European stock markets are predicted to start Monday positively, although significant gains may be limited as numerous central bank meetings are due to take place this week.
Asian markets have largely seen an increase, following better than anticipated results from Chinese retail sales and industrial output data. Industrial output experienced a rise of 7.0 percent in the January to February period, exceeding economists' forecasts of 5.0 percent growth. Retail sales also exceeded predictions, increasing by 5.5 percent during this period. Additionally, fixed asset investment expanded by 4.2 percent.
However, the real estate sector is lagging behind, with investments falling by 9 percent in comparison to the same period last year. In February, China's new bank loans dipped more than expected, sparking hope for potential stimulus measures.
Japan's Nikkei rose by more than 2 percent in anticipation of a policy shift by the Bank of Japan. The Bank is due to conclude its two-day policy meeting on Tuesday, which is expected to mark the end of its markedly dovish monetary policy.
Meanwhile, the Reserve Bank of Australia is predicted to maintain its interest rates at the finishing point of its two-day meeting on Tuesday, mirroring the anticipated move by the Federal Open Market Committee, which is due to make an announcement on Wednesday. Both the Swiss National Bank and the Bank of England are set to reveal their monetary policy decisions this week, which will undoubtedly cast an influence over the markets.
Investor attention is likely to zero in on the Eurozone CPI data for February and U.S. housing market data for March, given the economic calendar's light load on the day.
In Asian trading, gold wavered under pressure as the dollar remained steady, awaiting the FOMC meeting. Oil prices have also remained stable after experiencing their largest weekly increase in a month.
U.S. stocks reduced on Friday, whereas bond yields rose as investors braced for the upcoming central bank meetings. Fresh data revealed that manufacturing output rebounded in February, and consumer sentiment and inflation expectations remained stable in March.
The New York State Manufacturing Index descended to -20.9 in March 2024 from -2.4 in February. The technology-focused Nasdaq Composite reduced by 1 percent, the S&P 500 shrunk 0.7 percent to continue the three-day downward trend, and the Dow experienced a 0.5 percent drop.
European stocks also saw a reduction on Friday due to concerns surrounding inflation and interest rates. The pan-European STOXX 600 declined 0.3 percent. The German DAX ended marginally lower, while the U.K.'s FTSE 100 reduced 0.2 percent and France's CAC 40 finished in the black.
