European Shares Seen Up Ahead Of Central Bank Meetings

(RTTNews) - European stocks may open flat to slightly higher on Monday as investors brace for a slew of central bank meetings this week.

The U.S. Federal Reserve is all set to announce its first interest rate cut for more than four years on Wednesday, but the size of cut is shaping up to be a close call.

The Bank of England is expected to leave rates on hold at 5.00 percent on Thursday and investors would be watching for a decision over the pace of its bond sales.

The Bank of Japan meets on Friday and is widely expected to hold rates steady, but a majority of economists still expect an increase by year-end.

Elsewhere, South Africa's central bank may ease its policy this week, while Norway is seen holding steady. Rate decisions are also due in Brazil and Turkey.

Asian stocks made a cautious start to the week, with markets in mainland China, South Korea and Japan closed for holidays.

Growth worries returned to the fore after Chinese factory output, retail sales and investment numbers for August all missed expectations.

The yen strengthened, breaching 140 versus the U.S. dollar for the first time since 2023 ahead of U.S. retail sales and industrial production data due later in the week.

Gold held near record highs, driven by a weaker dollar and expectations of a more aggressive rate cut by the Federal Reserve at its policy meeting this week.

Oil was little changed, after having eked out its first weekly gain in a month. U.S. stocks closed higher on Friday amid growing expectations of interest rate cuts by the Federal Reserve and other central banks.

Sentiment was aided after a survey showed consumer sentiment rose to a four-month high in early September and one-year inflation expectations fell for the fourth straight month.

The tech-heavy Nasdaq Composite gained 0.7 percent and the S&P 500 added half a percent to log their best weekly gains of 2024 while the Dow climbed 0.7 percent.

European stocks advanced on Friday after former New York Fed President Bill Dudley said that there was a strong case for a 50-basis point reduction.

The pan European STOXX 600 jumped 0.8 percent. The German DAX rallied 1 percent, while France's CAC 40 and the U.K.'s FTSE 100 both rose about 0.4 percent.