European stocks are seen opening lower on Monday, with tech stocks likely to suffer heavy losses as benchmark U.S. 10-year Treasury yields steadied near one-week high and Tesla CEO Elon Musk informed Twitter that he wants to terminate the $44 billion, $54.20-a-share deal.
Asian markets fell sharply, though Japanese stocks climbed after the country’s governing party and its coalition partner scored a major victory in a parliamentary election Sunday.
Gold dipped on a soaring dollar as bets for steep interest-rate hikes gained traction after the release of upbeat U.S. jobs data.
Oil prices eased in Asian trade on demand concerns as the commercial hub of Shanghai braced for another mass testing campaign after detecting the BA.5 Omicron subvariant.
A slew of U.S. economic data including reports on retail sales, industrial production, consumer sentiment, consumer and producer price inflation are due this week, which could impact the outlook for interest rates.
Besides, traders will also keep an eye on quarterly results from financial giants JPMorgan Chase (JPM), Morgan Stanley (MS), Citigroup (C) and Wells Fargo (WFC).
U.S. stocks ended narrowly mixed on Friday as stronger-than-expected jobs data helped ease growth worries but added to expectations of another 75-bps rate hike at the upcoming Fed meeting later this month.
The Dow slipped 0.2 percent and the S&P 500 eased marginally while the tech-heavy Nasdaq Composite inched up 0.1 percent.
Data showed non-farm payroll employment jumped by 372,000 jobs in June while analysts had forecast 268,000 jobs. The jobless rate stabilized at its historically low level of 3.6 percent.
European stocks closed higher on Friday after the release of U.S. jobs report.
The pan-European Stoxx 600 rose half a percent. The German DAX climbed 1.3 percent and France’s CAC 40 index rose 0.4 percent while the U.K.’s FTSE 100 ended little changed after the resignation of British Prime Minister Boris Johnson.
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