By Peter Nurse
Investing.com - European stock markets are expected to open lower Monday as investors continue to fret about slowing global growth and central banks tighten monetary policy to combat soaring inflation.
European stocks fell last week, with the DAX , CAC 40 and FTSE 100 all down around 2%, led lower by a slump on Wall Street after the Federal Reserve lifted interest rates by 50 basis points and pointed to further increases of a similar size in the months ahead.
The Bank of England also raised interest rates, for the fourth meeting in a row, while policymakers at the European Central Bank have started talking more openly about hiking rates, potentially starting in July.
The ECB should hike interest rates as many as three times this year to combat inflation, Austrian central bank governor Robert Holzmann, a known hawk, said in a newspaper interview over the weekend.
Data earlier Monday from China showed the country's export growth slowed to single digits in April, growing 3.9% in April from a year earlier, compared with the 14.7% growth reported in March. The growth was the slowest since June 2020.
Elsewhere, Russia is preparing to mark the Monday anniversary of the Soviet Union's victory over Nazi Germany in World War II amid fears that President Putin will authorize an escalation of the conflict in Ukraine.
Oil prices were largely steady Monday with the focus on talks within the European Union over a Russian oil embargo, which is likely to further tighten global supplies.
European Union governments are set to meet again later this session to work out how to ensure countries most dependent on Russian energy, like landlocked Hungary, Slovakia, and the Czech Republic can cope with the proposed ban on Russian oil. The proposal requires a unanimous vote among EU members.
Over the weekend, the Group of Seven major industrialized nations agreed to a similar ban on imports of Russian oil.
However, there still remain concerns over global oil demand, especially with China’s ongoing COVID lockdowns. Saudi Arabia, the world's top oil exporter, lowered crude prices for Asia and Europe for June on Sunday.
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