European stocks may see a modest rise on Monday after Beijing introduced a raft of supportive measures for the property market. These measures, announced last week, include lifting home-buying restrictions in several major cities and unveiling government plans to purchase unsold homes.
Earlier today, the People's Bank of China kept its benchmark loan prime rate unchanged at record lows, as anticipated, to foster economic growth.
The U.S. economic calendar remains relatively quiet this week, with reports on durable goods orders, jobless claims, and new and existing home sales likely to attract some attention. Minutes from the Federal Reserve's April 30 to May 1 meeting, along with comments from several Fed officials, including Governor Christopher Waller, may also influence market sentiment as the week progresses.
Meanwhile, Fed Chair Jerome Powell's speech at a Georgetown Law School commencement ceremony on Sunday contained no remarks on monetary policy or the economy. Powell, who has tested positive for COVID-19, is currently working from home.
In Europe, manufacturing and services PMI flash figures from the Eurozone, along with U.K. inflation data due this week, may offer further insights into the economic and rate outlook.
In the Asian markets, the dollar held steady, and gold rose approximately 1% to trade above $2,400 per ounce. Oil prices remained relatively unchanged amid uncertainty surrounding Iranian President Ebrahim Raisi's condition following a helicopter crash. State media reported that there were "no survivors" at the crash site.
On Friday, U.S. stocks fluctuated before ending mostly higher, marking their fourth consecutive winning week on hopes of a September rate cut from the Federal Reserve. The Dow edged up 0.3%, closing above 40,000 for the first time. The S&P 500 added 0.1%, while the tech-heavy Nasdaq Composite finished marginally lower.
European stocks closed slightly lower on Friday, breaking a nine-day winning streak. This was due to hawkish comments from the Fed, some disappointing corporate earnings, and mixed economic data from China. The pan-European STOXX 600 slipped 0.1%, Germany's DAX and the U.K.'s FTSE 100 both eased around 0.2%, and France's CAC 40 shed 0.3%.