LONDON — European stocks are expected to open lower on Monday after a tumultuous trading week last week.
The U.K.’s FTSE index is seen opening 15 points lower at 6,980, Germany’s DAX 28 points lower at 13,089, France’s CAC 40 down 37 points at 5,850, and Italy’s FTSE MIB down 73 points at 21,528, according to data from IG.
The lower open for Europe today comes after a turbulent week of trading on the back of central bank action last week. The U.S. Federal Reserve raised its benchmark funds rate by 75 basis points, its largest hike since 1994, before the Swiss National Bank surprised markets with its first hike since 2007 and the Bank of England implemented its fifth rate rise in a row.
Following an emergency meeting last Wednesday, the European Central Bank also announced that it plans to create a new tool to tackle the risk of euro zone fragmentation, a move aimed at assuaging fears of a fresh debt crisis for the common currency bloc.
Stateside, the S&P 500 and the Nasdaq Composite bounced on Friday as Wall Street attempted to find its footing following a brutal week of selling. But all the major averages ended the week in the negative, with the S&P 500 posting its worst week since 2020. Markets in the U.S. are closed on Monday for a holiday.
Overnight, shares in Asia-Pacific were mixed in Monday morning trade, as investors monitored market reaction to the release of China’s latest benchmark lending rates.
There are no major earnings releases in Europe on Monday.
Germany is set to release its producer price index data for May.