European stocks are seen opening largely unchanged on Monday as oil held stable and the dollar held near a 10-week high amid safe-haven demand on concerns over corporate earnings, slowdown in global growth and geopolitical uncertainty.
There is some respite for emerging markets after far-right politician Jair Bolsonaro won Brazil’s presidential election on Sunday, marking a dramatic shift in the country’s political landscape.
Asian stock markets are trading mixed while oil prices dipped in Asian deals on demand concerns. China’s Shanghai Composite index is down over 2 percent while Australia’s benchmark S&P/ASX 200 is up over 1 percent, led by energy companies and financials.
Mortgage approvals data from the U.K. is due later in the session, headlining a light day for the European economic news.
Meanwhile, rating agency Standard & Poor’s on Friday maintained credit ratings for Italy but downgraded its outlook to negative from stable. The agency left the debt rating at BBB, two notches above “junk” status.
“The Italian government’s economic and fiscal policy settings are weighing on the country’s economic growth prospects, a critical driver of government debt-to-GDP trajectory,” it said.
In the U.S., the Labor Department is scheduled to release its closely watched monthly jobs report this Friday.
Traders are also likely to keep an eye on reports on personal income and spending, consumer confidence, labor productivity and costs, manufacturing activity, and international trade for additional clues on interest-rate outlook.
On the earnings front, Coca-Cola, General Electric, Pfizer, Amgen Facebook, General Motors, DowDuPont, Apple, Starbucks and Exxon Mobil are among a slew of companies due to report their quarterly results this week.
U.S. stocks slumped Friday on worries about slowdown in economic and company earnings growth. Investors also reacted to mixed reports on third-quarter GDP, consumer sentiment and core inflation.
The Dow Jones Industrial Average dropped 1.2 percent, the tech-heavy Nasdaq Composite lost 2.1 percent and the S&P 500 declined 1.7 percent.
European markets ended Friday’s session sharply lower in the wake of disappointing earnings from the likes of Amazon.com and Google parent Alphabet.
The pan-European Stoxx Europe 600 index shed 0.8 percent. The German DAX and the U.K’s FTSE 100 both dropped around 0.9 percent while France’s CAC 40 index tumbled 1.3 percent.