European markets open lower as investors focus on Fed meeting this week

European markets open lower with eyes on rate hikes

The European Stoxx 600 index opened lower on Monday, with all sectors in the red or flat.

Technology led the losses, down 1.6%, followed by travel, down 1.2%.

The focus this week is firmly on the host of upcoming central bank monetary policy decisions, with the Federal Reserve announcing its next rate hike on Wednesday, followed by the Bank of England and European Central Bank on Thursday.

Stoxx 600 index over the past week.

Oil to approach $100 a barrel by second half of 2023, RBC Capital Markets forecast

Oil prices could approach $100 a barrel in the second half of the year, according to Michael Tran of RBC Capital Markets.

“The bottom line here is that China is going to buy a lot of rough over the next few months,” he said.

Brent crude futures last traded at $86.85 a barrel, while US West Texas Intermediate futures rose 0.09% to $79.75 a barrel.

Investors and OPEC+ will also be waiting to see if the EU embargo on Russian petroleum products, which comes into effect on Sunday, will cause major disruptions. The oil cartel is not expected to make any real changes to its quotas or production forecasts at an upcoming meeting, Tran predicts.

—Lee Ying Shan

Adani Enterprises recovers as group affiliates continue to plunge

Shares of Adani Enterprises rose 10% after posting steep losses in previous sessions as its chief financial officer expressed confidence in its follow-on public offering which is expected to close on Jan. 31.

The stock is still down more than 20% in the first month of the year.

CNBC Pro: Goldman Sachs Names Tech Stocks With ‘Strong Track’ For Growth – Giving Nearly 70% Rise

One corner of technology could see a “limited appetite” from the market, according to Goldman Sachs. But the investment bank is optimistic.

He names stocks that offer near-term opportunities, as well as “offensive picks” that he says can beat their peers as the economy recovers.

CNBC Pro subscribers can learn more here.

—Weizhen Tan

European markets: here are the opening calls

European markets are heading for a lower open on Monday as investors focus on the upcoming US Federal Reserve meeting, which begins on Tuesday. The two-day meeting will conclude with the announcement of the central bank’s latest interest rate decision.

The United Kingdom FTSE100 the index is expected to open 13 points lower at 7,745, the German index DAX 22 points less at 15,122, France CAC down 9 points to 7,083 and Italy MIB FTSE down 17 points to 26,339, according to IG data.

Revenues come from Ryanair and Philips. Spain publishes preliminary inflation data for January.

—Holly Ellyatt

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