European stocks are set to open on a tepid note Monday amid concerns over higher interest rates and Russia-Ukraine discord, with the U.S. and EU seeking coordinated action, if Russia attacks Ukraine.
The U.S. State Department announced Sunday evening it would reduce staff levels at the U.S. Embassy in Kyiv, Ukraine, beginning with the departure of nonessential staff and family members.
Russia’s Foreign Ministry has rejected a British claim that Russia was seeking to replace Ukraine’s government with a pro-Moscow administration.
The U.S. central bank’s Federal Open Market Committee (FOMC) is scheduled to meet on Jan. 25-26, with investors awaiting clues on how soon and how much the Fed would raise rates in 2022.
On the Covid-19 front, the World Health Organization (WHO) has for the first time in a while indicated that the pandemic could come to an ‘end’ in Europe after the current Omicron-driven wave passes over.
Asian markets were mostly lower and the dollar held steady while gold was a tad higher.
Oil prices rose in Asian trade on fears of tighter supply amid rising geopolitical tensions in Easter Europe and the Middle East. Bitcoin hovered near $35,000 to extend its recent decline.
In economic releases, PMI surveys on manufacturing and services in the United States, United Kingdom, Germany and France are likely to be in focus later today.
U.S. stocks fell for a fourth straight session on Friday, fueled by a weak earnings report from Netflix and concerns about tightening Federal Reserve policy.
The Dow dropped 1.3 percent, the tech-heavy Nasdaq Composite tumbled 2.7 percent and the S&P 500 shed 1.9 percent.
European markets finished Friday’s session sharply lower as investors reacted to weak economic data, disappointing earnings updates and rising tensions between the U.S. and Russia over Ukraine.
The pan European Stoxx 600 plummeted 1.8 percent. The German DAX plunged 1.9 percent, France’s CAC 40 index lost 1.8 percent and the U.K.’s FTSE 100 declined 1.2 percent.