LONDON – European stocks are expected to open positively on Monday as global markets take a look at key US inflation data this week and further comments from the US Federal Reserve Chairman Jerome Powell on rate hikes.
UK FTSE The index is seen opening 16 points higher at 7,490, in Germany DAX 12 points higher at 15,946, of France CAC 40 up 16 points at 7,223 and that of Italy FTSE MIB 26 points higher at 27,463, according to data from IG.
Global markets have a busy week ahead with the latest US inflation data, a key data point this week. The US consumer price index is set for release on Wednesday and the producer price index is scheduled for Thursday.
Consumer prices have skyrocketed in Europe and the US in recent months. Last Friday, inflation in the euro area hit a new record high in December, at 5% compared with the same month last year.
Additionally, investors will be looking for more comment on the timing of an upcoming rate hike from Powell, as the Fed chair is expected to testify on Tuesday at his nomination hearing before a panel. The Senate.
The Fed has signaled that it may return to its easy monetary policy more aggressively than some expected. Minutes of the Fed’s December meeting released last Wednesday showed that the central bank is planning to shrink its balance sheet in addition to raising interest rates.
Markets will keep an eye on the security talks between American and Russian diplomats are in Geneva on Monday aimed at de-escalating tensions in Ukraine.
On the data front in Europe on Monday, the eurozone releases its latest unemployment figures for November, the Netherlands releases manufacturing output data for November and Italy releases sales figures. its industrial goods in the same month.
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