European markets head for flat open; investors focus on busy week of data, earnings

  • European stocks are expected to open in flat territory on Monday as investors gear up for a busy week on the data and earnings front.
  • London's FTSE is seen opening 5 points lower at 6,926, Germany's DAX 1 point higher at 15,274, France's CAC 40 down 1 point at 6,255 and Italy's FTSE MIB up 16 points at 24,169, according to IG.

LONDON — European stocks are expected to open in flat territory on Monday as investors gear up for a busy week on the data and earnings front.

London's FTSE is seen opening 5 points lower at 6,926, Germany's DAX 1 point higher at 15,274, France's CAC 40 down 1 point at 6,255 and Italy's FTSE MIB up 16 points at 24,169, according to IG.

European market sentiment could be overshadowed by economic events and data in the U.S. this coming week, with more U.S. corporate earnings due (some of the largest companies in the world are scheduled to publish results this week including Apple, Microsoft, Amazon and Alphabet) as well as big data releases, including the latest gross domestic product data due Thursday and inflation data Friday.

In addition, the U.S. Federal Reserve is holding a monetary policy meeting on Tuesday and Wednesday, and market participants will be closely watching for clues on whether the central bank is nervous about the prospect of rising inflation. It has previously said it sees the pickup in prices as only temporary.

Fed Chairman Jerome Powell will host a press conference Wednesday afternoon to discuss the Federal Open Market Committee's decision. U.S. stock futures held steady at the start of the overnight session Sunday evening in anticipation of the busy week ahead.

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Meanwhile, shares in major Asia-Pacific markets were mostly higher in Monday trade as investors continue to watch the Covid situation in India. The country continues to battle a startling rise in new coronavirus infections. On Sunday, nearly 350,000 new daily infections were registered.

The Biden administration has said it will immediately make raw materials needed for India's coronavirus vaccine production available. The U.S. response comes after Britain, France and Germany also pledged aid to India over the weekend.

European earnings come from Philips, Pearson and Michelin on Monday and Germany's Ifo Institute releases its latest survey of business conditions for April.

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