July 24, 2023 (MLN): European stocks declined at the start of a week packed with major central bank policy decisions and corporate earnings as investors fretted about the magnitude of further interest rate increases and their effect on the economy, as Bloomberg reported.
Spanish equities underperformed after an inconclusive outcome in the election on Sunday, with the uncertainty weighing on investor sentiment.
US stock-index futures were little changed after the S&P 500 closed little changed on Friday and the Nasdaq 100 saw continued selling in technology companies following a disappointing batch of results. Treasury yields edged slightly higher.
In Asia, most stock gauges advanced, with Japan’s market boosted by a report late Friday that Bank of Japan officials see little urgent need to address the side effects of their ultra-loose monetary policy.
China equities lagged as traders held out for signs of more policy support.
The yen rose after weakening more than 2% last week, with the sharpest part of the move coming after the BOJ report. Most major currencies traded within narrow ranges versus the dollar Monday.
Eyes on Central Banks
Earnings and central bank decisions will be in focus this week. Dutch medical-equipment maker Royal Philips NV fell even after raising its sales forecast for the year, while steelmaker Posco Holdings Inc. surged a record 24% after it unveiled a second-quarter profit that beat estimates. The jump helped propel the Kospi Index in South Korea to the highest since mid-June.
US heavyweights including Alphabet Inc., Exxon Mobil Corp. and Meta Platforms Inc. are all due to report, while in Asia investors will be watching names including Samsung Electronics Co., Rio Tinto Ltd. and Hitachi Ltd.
Traders are positioning for the Fed and the European Central Bank to raise interest rates and to signal whether more hikes are likely.
The BOJ is projected to stand pat, letting the rate gap with its peers widen as it waits for sustainable inflation.
“The Fed cannot take the risk of being surprised by a renewed surge in core inflation that would jeopardize inflation expectations, which have so far remained well anchored,” Franck Dixmier, global chief investment officer of fixed income at Allianz Global Investors, wrote in a note. “We cannot rule out a further adjustment in the autumn.”
In commodities, oil edged down after notching its fourth weekly gain amid tentative signs that global markets are tightening. Gold opened the week little changed after slipping against a stronger dollar on Friday.
Copyright Mettis Link News
Posted on: 2023-07-24T12:51:25+05:00
