European Stock Futures Lower. ECB, Bank Earnings In Focus By

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By Peter Nurse – European stock markets are expected to open with small losses Monday, at the start of a week which should see another jumbo rate hike by the ECB as well as quarterly results from Europe’s top investment banks.

At 02:00 ET (06:00 GMT), Germany’s contract was 0.5% lower. France dropped 0.4%, and the U.K. contract fell 0.4%.

The European equity markets will start the week on a negative note, as investors worry about slowing regional growth and the expectation that the European Central Bank will tighten its monetary policy to combat inflation.

A second 75 basis point rate hike by the ECB on Thursday looks like a done deal with euro area inflation at almost 10%, well above the central bank’s 2% target.

Data released Friday showed that the Eurozone remained close to a record low for October. This highlights the danger of a recession this winter, as households struggle with a severe cost-of-living crisis.

The latest economic data will be available Monday in the form numbers for October. These numbers will show if the euro area has fallen further into contraction territory at end of the third quarter.

China’s GDP rose 3.9% in the July-September quarter, official data showed Monday. This is an increase from the 0.4% pace recorded in the second quarter.

The data was originally set to be released on Oct. 18, but it was delayed by a crucial Communist Party Congress last week. This Congress ended with Xi Jinping securing a record-breaking third term as its leader.

Also of interest this week will be earnings from a number of Europe’s top investment banks, often seen as an important gauge of business health in the region. 

UBS (SIX 🙂 on Tuesday, followed subsequently by Deutsche Bank (ETR) Barclays (LON:) Wednesday’s announcement was the most anticipated. It is a major overhaul. Credit Suisse (SIX) Thursday

Elsewhere, Britain’s Conservative Party is set to select a new leader who will become prime minister, the country’s fifth in six years, later Monday. After Boris Johnson, the former PM, Rishi is the front-runner.

Oil prices fell Monday after data showed demand in China, the world’s largest importer of crude, remained subdued in September as its Zero-COVID policy continued to limit activity.

China imported 40.24million tons of crude oil last month. This is equivalent to 9.79 million barrels per hour, according to Monday’s data, which was a week behind schedule. This was slightly more than the August import of 9.5million barrels, but still below the nearly 10 million barrels per hour that were imported a full year earlier.

Futures were trading at $84.13 per barrel, 1.1% less than the previous day, while contract prices fell 1%, to $90.41. 

Also, the price of gold rose 0.2% to $1659.25/oz while it traded 0.1% lower at 0.9853

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