European stocks move higher ahead of central bank meetings

European stocks are expected to open higher on Monday as investors brace for stimulus cuts and rate hikes.  About 20 central banks are expected to hold monetary policy meetings this week, including the Fed, the European Central Bank and the Bank of England.  The Federal Reserve’s two-day review ends on Wednesday, with investors waiting to see if the US central bank will increase its reduction in bond purchases.  The ECB must decide the future of its bond-buying program at a meeting on Thursday, while the Bank of England should be cautious about Covid rather than worried about inflation.

Asian markets trade higher as worries over Omicron fade and attention turns to recent political developments in China. The Omicron variant of the corona virus is more contagious than the Delta strain and reduces the effectiveness of the vaccine but causes less severe symptoms, the World Health Organization said on Sunday, citing the first data. British Prime Minister Boris Johnson on Sunday warned of an impending “tidal wave” over Omicron and called the spread of the mutation an “emergency”.

At the end of the annual three-day central economic work conference, China’s top leaders pledged to take proactive fiscal policy to ensure economic stability by 2022. Dollar la remained steady as oil prices rose by 1%, optimism about the impact of the novel coronavirus limited to global fuel demand. Bitcoin remains below the $50,000 mark. In the midst of a bright day on the economic front, OPEC’s monthly report and Omicron news updates could affect sentiment as the day unfolds.

US stocks rose on Friday after data showed US consumer inflation rose 6.8% a year in November, reflecting the biggest jump since June 1982 amid growls and supply chain shortages. Traders seem to have been somewhat relieved that the rate of price increase has not been even faster.

A separate report showed that consumer sentiment in the United States unexpectedly improved in early December.  The Dow Jones Industrial Average rose 0.6%, the Nasdaq Composite gained 0.7% and the S&P 500 gained 1%. to close at a new high. 4,444 European stocks gave up early gains to slide lower on Friday as investors reviewed the latest economic indicators from the region and the United States. The European Stoxx 600 lost 0.3%. Germany’s DAX fell 0.1%, France’s CAC 40 index fell 0.2% and Britain’s FTSE 100 fell 0.4%.