European Stocks Seen Little Changed After Rally

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European stocks are seen opening largely unchanged on Monday amid a dearth of trading cues after strong gains over the weekend. The economic calendar remains light today, with reports on German business climate, U.K. mortgage approvals and U.S. new home sales slated for release later in the day.

The Federal Reserve is due to announce its latest monetary policy decision on Wednesday. While many expect the Fed to stand pat on rates, investors will closely scrutinize the accompanying statement for further clues to the timing of the much-anticipated lift-off from zero rates.

Besides the Fed decision, U.S. GDP, personal income and spending data due this week may provide additional cues on the health of the world’s largest economy.

Asian shares are mostly higher, although early momentum faded somewhat ahead of some key events on the horizon. The Bank of Japan is scheduled to hold its monetary policy meeting on Oct. 30 and economists are divided on whether the central bank will expand its asset-purchase program.

Investors also eagerly anticipate the outcome of China’s fifth plenum this week, where the country’s top policymakers will make key decisions on the future of the economy.

Oil prices dipped in early deals and gold held declines after a three-day drop even as the dollar took a breather after scaling a 2-1/2-month high versus a basket of currencies.

In corporate news, Standard Chartered Plc. reportedly plans to exit its equity derivatives and convertible bonds businesses.

Koninklijke Philips Electronics NV reported third-quarter net income of 324 million euros, compared to a net loss of 103 million euros a year ago.

Genmab A/S said that it has achieved a milestone in its DuoBody technology platform collaboration with Janssen Biotech Inc., triggering a $3 million payment.

Securitas AB has agreed to acquire the commercial contracts and operational assets of Diebold’s electronic security business in North America.

European stocks rallied on Friday, building on the previous session’s gains arising from expectations of further stimulus from the ECB, after China’s central bank cut interest rates for the sixth time since last November. The German DAX soared 2.9 percent, France’s CAC 40 index climbed 2.5 percent and the FTSE 100 of the U.K. gained 1.1 percent.

On Wall Street, the three major averages rose to more than two-month highs on Friday on the back of interest rate cut in China and better-than-expected earnings from Alphabet, Microsoft and Amazon. The Dow rose 0.9 percent, the tech-heavy Nasdaq rallied 2.3 percent and the S&P 500 advanced 1.1 percent.

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