FX.co ★ European Shares Set For Steady Opening Ahead Of Central Bank Meetings

European stocks are expected to start the week on a positive trajectory amid anticipation of a busy schedule filled with corporate earnings reports and central bank meetings.

Major U.S. companies including Amazon, Apple, Meta, and Microsoft are set to release their quarterly earnings this week, following disappointing outcomes from Tesla and Alphabet.

In light of a benign June inflation report, markets are speculating that the Federal Reserve will set the stage for a potential rate cut in September during its policy meeting on Wednesday.

The yen slightly declined today after reaching a 12-week high against the dollar last week. The Bank of Japan's policy meeting on Wednesday has generated mixed expectations regarding a potential 10-basis point hike. The central bank might also reveal its bond purchase tapering strategy.

The Bank of England is anticipated to cut base rates in its meeting on Thursday, although it may advise investors to temper expectations for a series of rapid rate reductions.

Key economic releases this week include the U.S. jobs report for July, and closely-watched surveys on U.S. and global manufacturing, alongside Eurozone GDP and inflation data, as well as Chinese factory activity figures, all of which could impact trading sentiment as the week unfolds.

Asian markets showed broad gains, led by Japanese equities. The dollar dipped, with gold prices rising towards $2,400 per ounce on expectations of U.S. rate cuts and growing tensions in the Middle East.

Turkish President Recep Tayyip Erdogan intensified tensions with Israel on Sunday, hinting at possible military action against the country amidst ongoing conflict with Hezbollah, an Iranian proxy group.

Oil prices edged up, yet remained close to six-week lows ahead of a significant OPEC+ meeting this week.

U.S. stocks climbed on Friday, capping off a tumultuous week on a high note, buoyed by a benign June PCE inflation report that increased hopes of further interest rate cuts this year. The PCE price index rose by a mere 0.1 percent in June, aligning with expectations, while the annual growth rate decelerated to 2.5 percent from 2.6 percent in May. Personal income grew less than anticipated, whereas personal spending met estimates. U.S. consumer sentiment saw a minor decline than previously estimated in July.

The Dow Jones Industrial Average surged by 1.6 percent, the tech-heavy Nasdaq Composite rallied by 1 percent, and the S&P 500 rose by 1.1 percent.

European stocks closed on a strong note on Friday as the global sell-off subsided, with investors responding positively to a series of encouraging earnings reports. The pan-European STOXX 600 increased by 0.8 percent, Germany's DAX climbed 0.7 percent, while France's CAC 40 and the U.K.'s FTSE 100 both rose by 1.2 percent.