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European markets seen lower
Sep 20 2021 11:23AM
European stocks are likely to open lower on Monday ahead of a busy week graced with no less than a dozen central bank meetings and elections in Canada and Germany.

The U.S. Federal Reserve concludes a two-day meeting on Wednesday and consensus is that it will stick with broad plans to begin tapering this year.

Central banks in the EU, Japan, the UK, Switzerland, Sweden, Norway, Indonesia, the Philippines, Taiwan, Brazil, South Africa, Turkey and Hungary all have meetings this week. Norway's Norges Bank is expected to be the first in the G10 to raise interest rates.

On the COVID-19 front, data needed to determine the advisability of booster shots of the Moderna Inc and Johnson & Johnson COVID-19 vaccines is just weeks away, U.S. President Joe Biden's chief medical adviser, Dr. Anthony Fauci, said on Sunday.

Asian stocks fell in thin holiday trade, with markets in Japan, China and South Korea closed for holidays.

Hong Kong's Hang Seng index tumbled more than 3 percent to hit an 11-month low as Evergrande contagion threat weighed on property stocks. The company has interest payments on two bonds due on Thursday.

The dollar hovered near a one-month high, denting the bullion's appeal. Oil extended losses from Friday after rig count in the U.S. rose.


The Fed's post-meeting statement is likely to be in the spotlight this week, overshadowing a slew of U.S. housing data.

Producer price data from Germany is due later in the session, headlining a light day for the European economic news.

U.S. stocks fell on Friday as COVID-19 uncertainties, disappointing consumer sentiment data and the increasing likelihood of a corporate tax hike dented sentiment.

The Dow dropped half a percent, while the tech-heavy Nasdaq Composite and the S&P 500 both shed around 0.9 percent.

European stocks also ended lower on Friday, with China's regulatory crackdown and signs of slowing global growth weighing on markets.

The pan European Stoxx 600 lost 0.9 percent. The German DAX fell 1 percent, France's CAC 40 index gave up 0.8 percent and the U.K.'s FTSE 100 declined 0.9 percent.

(Source:RTT News)