European stocks started the new week on a steady note, with investors looking ahead to several central bank policy meetings, including the Federal Reserve, trade talks between U.S. President Donald Trump and his Chinese counterpart Xi Jinping as well as more corporate earnings.
At 03:15 ET (07:15 GMT), the DAX index in Germany gained 0.2%, while the CAC 40 in France dropped 0.1% and the FTSE 100 in the U.K. traded largely unchanged.
U.S.-China trade framework Sentiment received a boost at the end of last week on the news that Trump was set to meet Xi next week in South Korea during next week’s APEC summit.
U.S. and Chinese officials on Sunday hashed out the framework of a trade deal for the two leaders to decide on when they meet.
An agreement could pause steep U.S. tariffs on Chinese goods as well as stringent Chinese rare earths export controls, calming investor nerves after the recent heightened U.S.–China friction that has clouded the global outlook.
"I’ve got a lot of respect for President Xi and I think we’re going to come away with a deal", Trump told reporters on Air Force One en route to Japan from Malaysia.
Fed to lead central bank parade Stock markets also received a boost at the end of last week as the annual U.S. inflation rate hit a lower-than-expected 3% in September, cementing expectations that the Federal Reserve will cut interest rates when it meets this week.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. The market is now pricing in a 96% chance of a 25 basis-point rate cut this week, according to the CME Fedwatch tool.
There are also policy meetings from the Bank of Japan and the Bank of Canada this week, while the European Central Bank is widely expected to maintain its policy rates given inflation remains around its 2% medium term target and economic growth seems stable.
That said, investors will look to the release of the October German Ifo business sentiment number for confirmation that confidence is growing in the eurozone’s largest economy.
Mega-tech earnings in spotlight Quarterly corporate earnings will remain in focus this week, with numbers from the mega-cap tech sector in the U.S. likely to shape near-term sentiment.
Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) and Meta Platforms (NASDAQ:META), five of the "Magnificent Seven," a group of companies with huge market capitalizations, are due to release their results this week.
One-third of S&P 500 constituents are set to report this week alone, including drugmaker Eli Lilly (NYSE:LLY), oil majors Exxon (NYSE:XOM) and Chevron (NYSE:CVX) and payment firms Visa (NYSE:V) and Mastercard (NYSE:MA).
Back in Europe, Galp Energia (ELI:GALP) reported a 53% increase in third-quarter net income, with the Portuguese energy company’s figures driven by stronger refining margins and higher commercial and trading results.
Crude helped by trade talks progress Oil prices steadied Monday after the previous week’s strong gains as traders cheered signs of progress in U.S.-China trade talks, lifting worries about a major fallout between the two largest economies in the world.
