Markets in Europe are expected to open on a negative note on Monday amidst overwhelming anxiety ahead of monetary policy decisions by the Federal Reserve, Bank of England and Bank of Japan. Optimism that the ECB would no longer hike rates is seen limiting the losses.
Wall Street had closed with deep losses on Friday, amidst anxiety ahead of the Fed’s review due on Wednesday. The massive options expiration on the third triple witching day of 2023 also contributed to the volatility. Nasdaq Composite plunged 1.6 percent to close at 13,708.33 whereas the Dow Jones Industrial Average dropped 0.83 percent to finish trading at 34,618.24.
A broadly positive sentiment however prevailed at the European bourses on Friday, driven largely by hopes of a dovish pivot by the European Central Bank. Robust economic data from China that surpassed expectations also abetted the positive sentiment. France’s CAC 40 surged 0.96 percent followed by Switzerland’s SMI that rallied 0.90 percent. Germany’s DAX gained 0.56 percent whereas U.K.’s FTSE 100 added half a percent. Gains in the pan-European Stoxx-50 were more modest at 0.38 percent.
Current indications from the European stock futures indicate a broadly negative sentiment. The CAC 40 Futures (Oct) is trading 0.19 percent higher. The SMI Futures (Dec) has slipped 0.08 percent. The pan-European Stoxx 50 Futures (Dec) has shed 0.07 percent. The DAX Futures (Dec) is currently trading 0.05 percent lower. The FTSE 100 Futures (Dec) is trading 0.03 percent lower.
American stock futures imply mild gains on opening. The US 30 (DJIA) is trading 0.15 percent higher, whereas the US500 (S&P 500) is trading 0.18 percent higher.
Asian stock markets are trading on a mostly negative note. Hong Kong’s Hang Seng has slipped 1.3 percent. South Korea’s KOSPI has plunged 0.94 percent. Australia’s S&P ASX 200 has dropped 0.7 percent. India’s Nifty 50 has edged 0.05 percent lower. China’s Shanghai Composite has gained 0.19 percent. New Zealand’s NZX 50 has gained a little less than half a percent. Japanese market is closed for a holiday.
The greenback edged lower for the second successive session. The Dollar Index (DXY), a measure of the U.S. dollar’s strength relative to six currencies, has declined 0.09 percent to 105.23 versus the previous close of 105.32. The EUR/USD pair has increased 0.17 percent to 1.0673 whereas the GBP/USD pair has added 0.09 percent to trade at 1.2400.
Amidst the dollar’s weakness, gold prices are firm above the flatline. Gold Futures for December settlement are trading at $1,950.65 per troy ounce, up 0.23 percent from the previous close of $1,946.20.
Crude oil prices are trading strong as supply concerns weigh on sentiment. Brent Crude Futures for November settlement increased 0.72 percent to $94.61 whereas WTI Crude Futures for November settlement surged 0.78 percent to $90.72.
Speeches from officials of European Central Bank as well as Bundesbank are scheduled for the day which is expected to shed further light on the monetary policy trajectory.
Earnings updates due from the region on Monday include Currys, Goodwin and Groupe Partouche.
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