UK stocks steadied as European bourses saw modest gains on Monday, at the beginning of what promises to be a busy week of US corporate earnings, Chinese economic data, IMF forecasts and culminating in the oil producer meeting in Doha.
Steady price action in equities was matched by modest declines in oil prices which came off daily highs after coming close to the peak reached on March 18. Any move above $43 on front-month Brent crude oil futures seems unlikely this week unless the result of the Doha meeting on Sunday is pre-announced.
Risk aversion was evident as the Japanese yen touched fresh 17-month highs before USD/JPY regained 108 whilst gold moved above $1250 per oz before pulling back.
A meeting of Italian banks involving talk of a possible rescue fund lifted banking shares across Europe ahead of the release of quarterly earnings from top money-centre banks later in the week. Mining company shares were top gainers on the FTSE 100 after data showed Chinese producer deflation moderated in March.
Shares of Tesco (LON:TSCO) gained over 1% ahead of its annual results this week.
US stocks look set for a higher open ahead of the official kick-off of first-quarter earnings season with Alcoa (NYSE:AA) reporting results.
USA pre-opening levels
S&P 500: 7 points higher at 2,054
Dow Jones: 53 points higher at 17,629
Nasdaq 100: 3 points higher at 4,496
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