- With sharp drops in manufacturing and services indices across Europe stoked fears about economic growth, global bonds rose and stock markets were subdued on Monday.
- At the start of a week filled with significant central bank policy announcements and corporate earnings, investors were leery of placing large equities wagers. According to preliminary readings of the Purchasing Managers' Indices, the private sector economy in Europe shrank more than expected in July in both the euro area and Britain.
- The data emphasizes the conundrum facing policymakers as traders prepare for interest rate hikes from the Federal Reserve and the European Central Bank this week and speculate on whether additional increases are inevitable following record tightening campaigns.
- While all is going on, equity markets are preparing for their busiest earnings week of the year, with more than 500 major firms worldwide expected to announce their quarterly results, including US megacaps like Alphabet and Meta. The coming days will be key for investors, who will be keeping an eye on profit margins to see if the economy is slowing down.
