European stocks are poised for a subdued start on Monday following a strong performance in the previous session, driven by optimistic earnings reports and expectations of lower U.S. interest rates this year.
On Sunday, European leaders collectively condemned the political violence in the U.S., sparked by an assassination attempt on former President Donald Trump on Saturday.
This event is anticipated to significantly impact the U.S. electoral landscape, with broader implications for both global and European spheres.
Asian markets presented a mixed picture. Hong Kong's Hang Seng index dropped over 1 percent after data revealed that China's economic growth in the second quarter was significantly slower than anticipated.
China's Q2 GDP increased by 4.7 percent, down from a 5.3 percent rise in Q1, and fell short of the expected 5.1 percent growth. June retail sales also failed to meet estimates, though industrial production exceeded expectations and urban fixed asset investment aligned with predictions for the year's first half.
These figures have heightened pressure on Beijing to bolster investor confidence at its pivotal policy meeting held every five years.
In Asian trade, gold and oil prices were marginally higher. Meanwhile, U.S. bond futures declined and the dollar remained steady ahead of a busy week featuring earnings reports and economic data releases. Key U.S. reports to watch this week include retail sales, industrial production, import and export prices, and housing starts.
Federal Reserve Chair Jerome Powell's speech later today will be closely scrutinized, particularly following his Congressional testimony last week where he emphasized the need for more positive inflation data.
On the earnings front, notable corporations such as Abbott Laboratories, Goldman Sachs, Johnson & Johnson, Bank of America, Morgan Stanley, UnitedHealth, Netflix, and American Express are set to release their quarterly results this week.
Eurostat will be releasing euro area industrial production data for May later today. Economists predict a 0.9 percent monthly decline, following a 0.1 percent decrease in April.
U.S. stocks closed higher on Friday, with large-cap stocks rebounding from significant losses in the prior session on the back of anticipated Fed rate cuts.
Investors appeared unfazed by data indicating U.S. producer prices rose slightly more than expected in June due to increased service costs.
All three major U.S. indices climbed approximately 0.6 percent, even as Wells Fargo, JP Morgan Chase, and Citigroup saw declines after their quarterly earnings reports.
European stocks concluded firmly for the third consecutive session on Friday.
The pan-European STOXX 600 index rose by 0.9 percent. Germany's DAX surged by 1.1 percent, France's CAC 40 climbed by 1.3 percent, and the U.K.'s FTSE 100 increased by 0.4 percent.
