While U.S. markets will be closed Monday for Memorial Day, investors have plenty to look forward to this week, from earnings and monetary policy decisions to Chinese trade data and the European Central Bank meeting on Thursday and Friday. Here’s what you need to know as we head into what may shape up to be a big week of market moves ahead of the summer holiday season’s quiet stretch. First, here’s what happened in Europe in the last 24 hours (all times local)

European Markets Are Expected to Fall on Monday

European Markets Are Expected to Fall on Monday
Image Source: Yahoo Finance

Markets in Europe are expected to fall on Monday as investors prepare for a busy week of corporate earnings and a key monetary policy announcement by the Federal Reserve. Britain’s FTSE 100 is expected to fall around 29 points to 7,247, Germany’s DAX will lose around 83 points to 13,171 and France’s CAC 40 is expected to drop around 40 points to 6,177.

This week’s focus will be on the U.S. Federal Reserve’s two-day policy meeting, which concludes on Wednesday, with economists widely expecting a 75 basis point hike in interest rates.

European Central Bank hiked the interest rate by 50 basis points last week, bigger than previously expected.

Robert Holzmann The Hawkish ECB Policymaker

Robert Holzmann The Hawkish ECB Policymaker
Image Source: Reuters

Hawkish ECB policymaker Robert Holzmann told an Austrian broadcaster on Sunday the Governing Council will consider the economic climate across the eurozone before determining whether another big rate hike will be possible in September.

Overnight, Asia-Pacific shares were mostly lower as concerns about a global economic downturn dampened risk-on sentiment for investors, with traditional safe haven bonds and the dollar in particularly strong demand.

In Early Premarket Trade U.S.Stocks Fell After a Positive Week

In Early Premarket Trade U.S.Stocks Fell After a Positive Week
Image Source: The Financial Express

The U.S. stock market was lower in early premarket trade after a positive week on Wall Street, as traders braced for a flurry of corporate earnings and assessed the Fed’s future rate hike trajectory. In addition to earnings, corporate earnings will also be a major driver of stock market movement in Europe, with UBS, Unilever, LVMH, Credit Suisse, Deutsche Bank, Daimler, Shell, Barclays, Nestle, and Renault among the major players reporting throughout the week. On Monday, some notable earnings are expected from Ryanair, Vodafone, Philips, Faurecia, and Julius Baer.

German retail sales and the Ifo business climate index for July are due out this morning.