(RTTNews) – European stocks may open broadly lower on Monday, with regional volumes likely to remain thin due to a bank holiday in the U.K.
U.S. stock futures edged lower due to profit taking after the S&P 500 logged its longest positive streak in two decades.
Investors may react to mixed signals on tariffs from U.S. President Donald Trump after recent optimism on trade talks.
Trump said aboard Air Force One that his administration could strike trade deals with some countries as soon as this week, without specifying any countries.
“We’re negotiating with many countries, but at the end of this, I’ll set my own deals — because I set the deal, they don’t set the deal.”
Trump also said he is willing to lower tariffs on China at some point, but insisted he had no plans to speak with Chinese President Xi Jinping this week.
In another development, Trump has announced plans to impose a 100 percent tariff on foreign films, claiming that Hollywood is undergoing a “very fast death” due to overseas competition.
In economic news, Fed and BoE rate decisions along with U.S. service sector activity data may garner investor attention this week.
Despite heightened economic uncertainty, the U.S. Federal Reserve is widely expected to stay in “wait-and-see” mode and keep its key interest rate steady at the end of its two-day meeting on Wednesday.
The Bank of England is seen cutting interest rates by 25 basis points to 4.25 percent on Thursday. Traders will monitor the vote split and the Bank’s press conference closely to assess the potential for future easing.
Asian stocks were mixed in thin trade, with markets in South Korea, Japan, China and Hong Kong closed for holidays.
Gold ticked higher as the U.S. dollar continued to struggle around the 100 mark on tariff-related concerns.
Crude prices plummeted over $2 per barrel as OPEC+ announced increased production, raising concerns about a potential supply glut.
U.S. stocks rose sharply on Friday and Treasury yields rose, with sentiment boosted by a stronger-than-expected report on the job market and some de-escalation in Sino-U.S. trade tensions.
The S&P 500 surged 1.5 percent to end higher for the ninth consecutive session, marking its longest winning streak in over twenty years.
The tech-heavy Nasdaq Composite also rose 1.5 percent while the Dow added 1.4 percent.
Data showed U.S. non-farm payroll employment shot up by 177,000 jobs in April compared to expectations for an increase of about 130,000 jobs.
The unemployment rate came in unchanged at 4.2 percent, matching economist estimates while job growth in February and March were downwardly revised to 102,000 jobs and 185,000 jobs, respectively, reflecting a net downward revision of 58,000 jobs.
European stocks closed higher on Friday amid easing concerns about U.S-China trade relations.
The pan European STOXX 600 gained 1.7 percent. The German DAX rallied 2.6 percent, France’s CAC 40 climbed 2.3 percent and the U.K.’s FTSE 100 advanced 1.2 percent.
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