European stocks should follow the decline of their Asian peers

(RTTNews) – European stocks are expected to open lower on Monday ahead of a busy week with as many as a dozen central bank meetings and elections in Canada and Germany.

The US Federal Reserve concludes a two-day meeting on Wednesday and the consensus is that it will stick to big plans to start shrinking this year.

The central banks of the EU, Japan, UK, Switzerland, Sweden, Norway, Indonesia, Philippines, Taiwan, Brazil, South Africa, Turkey and Hungary all have meetings this week. Norges Bank of Norway is expected to be the first in the G10 to raise interest rates.

On the COVID-19 front, the data needed to determine the timeliness of booster injections of Moderna Inc and Johnson & Johnson COVID-19 vaccines are only weeks away, the president’s chief medical adviser said on Sunday. American Joe Biden, Dr. Anthony Fauci.

Asian stocks fell as part of holiday trading, with markets in Japan, China and South Korea closed for the holidays.

Hong Kong’s Hang Seng Index fell more than 3% to an 11-month low as the threat of Evergrande contagion weighed on real estate stocks. The company has interest payments on two bonds due Thursday.

The dollar hovered near a one-month high, shaking the appeal of the bullion. Oil extended its losses from Friday after the number of drilling rigs in the United States increased.

The Fed’s post-meeting statement is expected to be in the spotlight this week, overshadowing a plethora of U.S. housing data.

Germany producer price data is due later in the session, headlining European economic news.

U.S. stocks fell on Friday as uncertainties over COVID-19, disappointing data on consumer sentiment and the growing likelihood of a corporate tax hike rocked sentiment.

The Dow Jones fell half a percent, while the Nasdaq Composite and the S&P 500 both lost around 0.9%.

European stocks also ended lower on Friday, with China’s regulatory crackdown and signs of slowing global growth weighing on markets.

The pan-European Stoxx 600 lost 0.9%. The German DAX fell 1%, the French CAC 40 index fell 0.8% and the UK FTSE 100 fell 0.9%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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