Stocks gain, oil falls, traders focus on rates outlook
By Elizabeth Howcroft
LONDON (Reuters) — European stock indexes rose on Monday as investors focused on the outlook for interest rates ahead of a busy week of central bank meetings and economic data.
Investors are waiting for the outcome of meetings at the Bank of Japan (BOJ) on Tuesday, the U.S. Federal Reserve on Wednesday and the Bank of England (BoE) on Thursday, as well as Chinese manufacturing data on Tuesday and key U.S. jobs data on Friday, all of which will be scrutinised for any clues that central banks have raised interest rates sufficiently to combat inflation and can look towards easing monetary policy again.
The earnings season also continues with Apple (NASDAQ:AAPL), Airbnb, McDonald's (NYSE:MCD), Moderna (NASDAQ:MRNA) and Eli Lilly & Co (NYSE:LLY) among the many reporting this week. Results so far have been underwhelming, contributing to the S&P 500's retreat into correction territory.
At 1152 GMT, the MSCI World Equity Index was little changed, up 0.1% on the day but still near its lowest since late March.
Stocks were subdued in the Asian session, with MSCI's broadest index of Asia-Pacific shares outside Japan up 0.3%, having hit a one-year low last week.
Europe's STOXX 600 was up 0.8% and London's FTSE 100 was also 0.8% higher.
U.S. stock futures were up, suggesting the market gains were set to continue in Wall Street.
The market is looking for «confirmation of the peak rate policy by central banks and any indication that might lead to thinking that perhaps central banks will be in a position to cut (rates) by the middle of next year,» said Samy Chaar, chief economist at Lombard Odier.
Japan's Nikkei fell 0.95% amid speculation the BOJ might tweak its yield curve control policy when its two-day policy
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