European stocks are likely to open higher on Monday, with underlying sentiment likely to remain supported by prospects of higher U.S. fiscal stimulus and dovish Federal Reserve outlook.
Former U.S. President Donald Trump was acquitted Saturday on charges of inciting an insurrection at the U.S. Capitol after a majority of Republicans declared him not guilty, in a sign of the powerful grip the 74-year-old Trump continues to exert on his part.
Japan on Sunday formally approved its first Covid-19 vaccine, clearing the way for mass inoculations at the nation.
On the economic front, preliminary data showed Japan’s economy continued its recovery from the coronavirus pandemic in the October-December period in annualized real terms.
Asian markets hit record highs in thin holiday trade while the dollar edged up slightly, reducing gold’s appeal to buyers holding other currencies. Oil hit a fresh 13-month high on fears of heightened tensions in the Middle East.
Bitcoin fell nearly 6 percent in Asian trading after having posting a record peak of $49,714.66 on Sunday.
Industrial production and foreign trade figures from euro area are due later in the session, headlining a light day for the European economic news.
Across the Atlantic, this week’s trading may be impacted by a slew of data, including reports on retail sales, producer prices, industrial production, housing starts, and existing home sales.
The highlight of the week will probably be minutes of the U.S. Federal Reserve’s January meeting, where policymakers decided to leave rates unchanged.
U.S. stocks closed at record highs on Friday as coronavirus cases continued to fall and data showed an unexpected deterioration in U.S. consumer sentiment, raising expectations for additional fiscal stimulus.
The Dow Jones Industrial Average edged up 0.1 percent, while the tech-heavy Nasdaq Composite and the S&P 500 both rose around half a percent.
European stocks advanced on Friday as investors tracked quarterly earnings and the gathering pace of vaccinations against Covid-19.
The pan European Stoxx 600 inched up 0.6 percent. The German DAX edged up 0.1 percent, France’s CAC 40 index gained 0.6 percent and the U.K.’s FTSE 100 added 0.9 percent.
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