US stock markets mixed before key rate calls

US stock markets mixed before key rate calls

Stock markets diverged Monday as traders reacted to weak global data and political uncertainty in Spain, while awaiting key interest-rate decisions due this week.

Wall Street's top indices pushed higher, with the Dow climbing 0.5 percent for its 11th straight positive session.

While the Dow's performance has been "amazing," the upcoming flock of earnings will be critical, according to Tower Bridge Advisors' Maris Ogg.

"The market is getting kind of expensive," Ogg said. "We'll see what happens when the numbers actually come through."

Europe's main indices ended the day little changed, with Madrid down 0.4 percent as Spanish Prime Minister Pedro Sanchez and his right-wing rival try to head off a fresh vote after an inconclusive snap election resulted in a hung parliament.

Asia's top stock markets were a mixed bag amid concern over weakness in the Chinese economy.

China's top leaders said the world's second-biggest economy was facing "new difficulties and challenges" in a meeting of the 24-person Politburo on Monday.

"This week may be one of the most important of the year considering the intensity of macro events and as the US earning season picks up," said Walid Koudmani, chief market analysts at XTB online investing firm.

US tech giants including Google owner Alphabet, Facebook parent Meta and Microsoft are releasing second quarter earnings reports this week.

On top of that, the US Federal Reserve is expected to announce another rate hike on Wednesday in its fight against inflation, followed by a similar decision by the European Central Bank on Thursday.

A string of positive US data in recent months has given the Fed some room to take its foot off the pedal and allow the economy to avert a feared recession.

The US economy expanded in July, but at a slower rate, according to the S&P Global's purchasing managers' index (PMI).

But in the eurozone, economic activity shrank at its fastest rate for eight months in July, as a contraction gathered pace on the back of cuts in manufacturing, according to the HCOB Flash Eurozone PMI.

The ECB "will raise rates this week as planned, but with economic weakness spreading, the outcome of the September meeting is becoming an increasingly close call", noted UniCredit economist Tullia Bucco.

"With headline inflation decelerating and the labor market starting to soften, a forward-looking analysis would point to no more tightening beyond this week."

Separate PMI data Monday showed the UK's private sector appearing to have slammed the brakes on growth.

On the corporate front, shares in British online supermarket Ocado surged more than 14 percent after it settled a dispute over robot patents with Norwegian company AutoStore.

Mattel gained 1.8 percent on expectations that the blockbuster "Barbie" movie will boost toy sales and licensing revenues. The film took in $155 million in its first weekend in North America.

- Key figures around 2020 GMT -

New York - Dow: UP 0.5 percent at 35,411.24 (close)

New York - S&P 500 : UP 0.4 percent at 4,554.64 (close)

New York - Nasdaq: UP 0.2 percent at 14,058.87 (close)

London - FTSE 100: UP 0.2 percent at 7,678.59 (close)

Frankfurt - DAX: UP less than 0.1 percent at 16,190.95 (close)

Paris - CAC 40: DOWN less than 0.1 percent at 7,427.31 (close)

EURO STOXX 50: DOWN 0.2 percent at 4,383.03 (close)

Tokyo - Nikkei 225: UP 1.2 percent at 32,700.94 (close)

Hong Kong - Hang Seng Index: DOWN 2.1 percent at 18,668.15 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,164.16 (close)

Euro/dollar: DOWN at $1.1067 from $1.1124 on Friday

Pound/dollar: DOWN at $1.2821 from $1.2854

Euro/pound: DOWN at 86.29 pence from 86.58 pence

Dollar/yen: DOWN at 141.51 yen from 141.73 yen

Brent North Sea crude: UP 2.1 percent at $82.74 per barrel

West Texas Intermediate: UP 2.2 percent at $78.74 per barrel

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